If you have a foreign bank account or any other kind of foreign financial account that has not been reported to the IRS on a Foreign Bank Account Report, you are at risk of having severe criminal and financial charges brought against you. However, the IRS Offshore Voluntary Disclosure Program can offer a solution for taxpayers with previously undisclosed foreign assets. OVDP can essentially eliminate taxpayer’s risk of criminal prosecution for not previously disclosing their overseas accounts. This includes failure to file or report any earnings from those accounts to the IRS on a Foreign Bank Account Report (FBAR) yearly. Voluntary disclosure through OVDP allows taxpayers to pay the IRS a mixture of tax, penalties, and interest instead of facing potential major civil and criminal charges. Foreign financial accounts that should be disclosed on a Foreign Bank Account Report (FBAR) include any of the following that are held with an institution located outside the United States:
If you have a financial account or assets with an institution outside of the US that you have not reported to the IRS, you may be in violation of the Foreign Bank Account Report regulations. We urge you to contact our law firm for a confidential consultation with Chad Silver, Esq. Call 800-369-2629 to learn more. We offer a free consultation, will take over all correspondence and communications with the IRS, and help you avoid civil penalties and possible criminal prosecution.
It is imperative to act quickly- if the foreign financial institution at which the taxpayer has an account has been publicly identified as being under investigation or as cooperating with a government investigation, the taxpayer could be charged a penalty of up to 50 percent of their assets.
Many taxpayers make the mistake of failing to report worldwide assets and accounts on their tax return. If you have any assets overseas that are collecting dividends, or even rental property overseas, it needs to be reported on your yearly income tax to avoid penalties. Additionally, a Foreign Bank Account Report or FBAR must be filed annually to avoid possible jail time, criminal prosecution and high civil penalties.
An FBAR must be filed by taxpayers with financial accounts outside of the United States which total more than $10,000. For taxpayers with offshore accounts totaling more than $50,000, a Statement of Foreign Financial Assets (Form 8938) may also be required to file each year. These forms need to be filed even if the taxpayer only has signatory authority over the accounts and no actual legal claim to the funds in the accounts.
For taxpayers who un-willfully neglect to do this, or have made an honest mistake on a tax return, the Streamlined Offshore Voluntary Disclosure Program may be the best solution for them. Prior to the streamlined OVDP, which was introduced by the IRS on June 18, 2014, taxpayers were subject to a 27.5 percent penalty for not reporting foreign assets or overseas income. Currently taxpayers may only be subject to a 5 percent penalty, if they qualify.
However, taxpayers with undisclosed foreign assets need to act quickly- if the foreign financial institution at which the taxpayer has an account has been publicly identified as being under investigation or as cooperating with a government investigation, the taxpayer could be charged a penalty of up to 50 percent of their assets.
Eligible US taxpayers who resided outside the US in any one or more of the most recent three years for which the US tax return due date has passed (2012 through 2014) will not pay any penalties.
It is important to note, the streamlined OVDP is only applicable to taxpayers whose conduct was non-willful, meaning that they simply made a mistake on their tax return that was the result of a good faith misunderstanding. Taxpayers who knowingly violated the law will be subject to the higher 27.5 percent penalty, but can still avoid criminal and civil charges through OVDP. Taxpayers who are already being audited by the IRS or whose non-compliance has already been identified by the government are not eligible for either resolution.
The IRS has a list of individuals that reside in the United States that have offshore bank accounts. If the IRS finds out about your offshore bank account before you report it, they can seize your accounts and charge you criminally. Let Chad Silver Esq., LLC help you avoid criminal prosecution and potential jail time due to undisclosed foreign assets.
At Chad Silver, Esq., LLC, we keep up to date on the continuously evolving rules and regulations related to IRS offshore initiatives. We will bring your offshore account into IRS compliance and minimize your criminal exposure to the IRS swiftly through efficiency and accuracy. We will handle all correspondence and communication with the IRS on your behalf to guarantee your case is being processed correctly and in a timely manner.
Once a non-prosecution agreement is reached with the Internal Revenue Service, the attorneys at Chad Silver, Esq., LLC will endeavor to meet all of the Offshore Voluntary Disclosure requirements, including the filing of all required amended federal income tax returns and FBAR returns on your behalf.
If you have an offshore account that you have not previously disclosed to the IRS, we urge you to contact our law firm immediately for a confidential consultation with Chad Silver, Esq., LLC. Once a non-prosecution agreement is reached with the Internal Revenue Service, the attorneys at Chad Silver, Esq., LLC will endeavor to meet all of the Offshore Voluntary Disclosure requirements, including the filing of all required amended federal income tax returns and FBAR returns on your behalf.
Call 800-369-2629 to learn more.