WE MAKE YOUR IRS TAX MYSTERY, HISTORY!

STRATEGIC TAX LAWYERS:  TAX BLOG

Hiding Money in Offshore Bank Accounts

Wednesday, February 10, 2016

Taxpayers who avoiding paying their tax liability by keeping money hidden in unreported offshore accounts is a violation of the tax law.  The IRS is enforcing any actions related to hiding money in offshore bank accounts, and is also discouraging taxpayers from trying to illegally hide money and income offshore.  The IRS has options for taxpayers to pay their taxes and to get their tax filing obligations in order.  


In 2009, the IRS started the Offshore Voluntary Disclosure Program (OVDP) allowing for nearly 55,000 voluntary disclosures totaling over $8 billion collected.  In addition, tens of millions of dollars has been returned to the IRS due to thousands of audits related to offshore bank accounts. Taxpayers have faced criminal charges due to their actions, which also brought in billions of dollars in criminal fines. 


If you have an offshore bank account and have not disclosed to the IRS, you may need a good tax attorney.


The IRS has a top priority to put an end to offshore tax evasion. This is a major goal for the IRS, even with their increased staff layoffs and budget reductions. In previous circumstances, offshore bank accounts targeted taxpayers into illegal tax scams. These scams have led to major penalties and interest charges, including criminal suits. The IRS will do anything to put criminals behind bars.


Hiding income overseas is one of the most common ways to evade paying U.S. taxes. The individual would then use a debit or credit card to have access to the funds. There were other ways to have ties to the hidden income overseas, which include foreign trusts, private annuities or insurance plans. Fortunately, the IRS is able to access information from their investigations to go after taxpayers with undeclared offshore bank accounts.  In addition, the IRS will pursue the banks and bankers who assisted their clients with hiding their money in financial accounts overseas. There are many valid reasons to keep financial accounts abroad, and there is nothing illegal about it. The problem comes about when individuals fail to follow the reporting requirements that the IRS requires, which is illegal. If U.S. taxpayers with overseas bank accounts do not comply with the reporting requirements, then that action is illegal and the law is being broken. The repercussions are severe, which include penalties, fines, and possible criminal prosecution.


The OVDP has allowed for tens of thousands of individuals to voluntarily reveal their foreign bank accounts, and in return, they receive a way to resolve their tax obligations with the IRS. 

Third-Party Reporting


We are the Strategic Tax Lawyers and we are IRS tax attorneys and experts in the tax code. We have years of experience working with the IRS and negotiating deals for our clients. The Strategic Tax Lawyers, LLP are a firm of taxation attorneys, Intent to Levy attorneys, Fresh Start attorneys and experts in Offer in Compromise.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your tax-related matters.