The Inspector General’s office recently released a scathing report accusing the IRS of missing more than $39 Million in uncollected offshore tax revenues. The report harshly criticized the IRS’ complete failure to follow up on rejected OVDP and offshore IRS violators as well as internal assignment of personnel based upon qualifications and need. The bottom line: The IRS has agreed to step up efforts to review those who have been rejected from the IRS OVDP (Offshore Voluntary Disclosure Program) as well as those who have yet to file.
This may be the final wake up for those who have not come clean with the IRS about offshore accounts. The IRS itself hinted just last week that the OVDP program is “not intended to exist into perpetuity” and the end of this program will bring harsh realities to US taxpayers, including the genuine risk of prison. The IRS has severely punished hundreds of offshore violators, who failed to disclose foreign bank accounts, investments accounts and investments, real property, trusts, mutual funds, corporate ownership or income. Many have received long prison sentences, and multi-million dollar fines.
The OVDP was provided to taxpayers as a way for them to disclose previously unreported offshore accounts, assets and income. The program requires that prior year tax returns be adjusted, FBAR filings to be updated and back taxes, penalties and interest paid. Time is running out. If you have not yet disclosed offshore assets, accounts or income the days may be limited before you face the full fury (and draconian financial consequences) of a failure to come into compliance with the IRS and FBAR reporting.
The experienced international and domestic tax attorneys at Allen Barron are uniquely positioned to help you. You can disclose your portfolio and all information to us under the protection of the attorney-client privilege. We can help you to identify the best possible strategy to come into FBAR compliance in the least expensive manner possible. The IG’s report has had a significant impact on the IRS, as well as the OVDP and offshore IRS violators who have yet to come into compliance. Don’t miss your opportunity to act. Contact us for a free consultation at 866-631-3470.