The IRS has gained access to the vast majority of offshore account and property information. This data ties those accounts and assets to specific US social security numbers and Federal Taxpayer IDs, and beginning July 1st they will start to connect the dots. You have until August 15 of this year to act. After that date, you can expect to hear from the IRS at any time with the news of an audit, and the potential for criminal tax evasion charges due to perceived “willful conduct” to avoid reporting foreign bank accounts and assets. According to a US Congressional Committee, the IRS will have access to information on up to 85% of the bank and investment accounts worldwide after July 1. It’s simply a matter of time before they connect the dots and the audit notices go out. If the IRS comes to you (and it will be in the form of an audit), they will assume that your conduct was “willful” to avoid paying US taxes, and you will face 50% penalties (highest aggregate valuation point over the past 8 years), and exposure to criminal tax evasion charges. Recently, a federal jury found an 87 year old Florida man guilty, and he faces penalties over $2,000,000 on accounts that are presently only worth around half of that. This is real, and this is now. If you file under the Streamlined Domestic Offshore Procedures for OVDP you can reduce that to 5% and they will only look back 3 years. You will also be released from any potential criminal action. The IRS has your data, and the ability to tie things directly back to individual US taxpayers. It’s only a matter of time.

Call us at 866-631-3470 for a confidential and complimentary initial consultation. Your information will be protected by attorney-client privilege and we will discuss how to bring you into compliance and save you thousands of dollars in the process.

Tags: FBAR, IRS, OVDP, Streamlined Domestic Offshore Procedures

 

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