The IRS knows more about your offshore accounts than you might think. Since the implementation of FATCA the US Treasury Department has forced international compliance with electronic account and transaction reporting. The IRS Network of Inter-Governmental Agreements (IGAs) is growing at a rapid rate. The IRS continues to expand the number of international banks, financial institutions and investment houses and sovereign tax agencies who provide detailed financial reports on US taxpayers accounts, balances and transactions.
John Koskinen, the recent IRS Commissioner said “The groundbreaking effort around automatic reporting of foreign accounts has given us a much stronger hand in fighting tax evasion. People with undisclosed foreign accounts should carefully consider their options and use available avenues, including the offshore program and streamlined procedures, to come back into full compliance with their tax obligations.”
There are specific reporting requirements for all US taxpayers who have offshore assets, income or financial accounts. The failure to report these activities on the IRS FBAR and associated forms exposes US taxpayers to a host of extensive penalties and the potential for criminal prosecution.
Recent developments show even cryptocurrencies are no longer safe havens for those who wish to avoid US taxation. US taxpayers need to know the IRS knows more about your offshore accounts than you might think. The IRS is receiving direct, electronic disclosures of offshore bank accounts, investment accounts, trusts, foreign corporate ownership, foreign investments, cryptocurrency holdings and other assets from banks, investment houses, exchanges and sovereign tax authorities around the world.
The time has come to make a full disclosure to the IRS and to amend previous FBARs and associated IRS forms to reflect the status of your holdings to prevent additional fines, penalties, interest and the potential for criminal prosecution.
The experienced tax attorneys at Janathan L. Allen, APC and the professionals of Allen Barron will provide informed advice and counsel as well as the valuable protections of the attorney-client privilege. We will ensure that you comply with IRS FBAR and other reporting requirements while protecting your interests to ensure that your exposure is reduced. We invite you to contact Allen Barron or call today to schedule a free and substantive consultation. The IRS knows more about your offshore accounts than you might think and a knock on the door from the IRS and a subsequent expensive and risky audit are more likely with each passing day.
