The IRS has been devoting significant resources to stopping offshore tax evasion.
In general, U.S. citizens have an obligation to disclose offshore accounts or assets. We assist taxpayers who may have failed to adequately disclose their assets to minimize their potential financial or criminal exposure. Entering the Offshore Voluntary Disclosure Program (OVDP) is one option which may be available to qualified taxpayers.
U.S. citizens must annually report their financial interest in a financial account that is maintained with a financial institution located in a foreign country if, for any calendar year, the total value of all foreign accounts exceeded $10,000 at any time during the year. A taxpayer discloses the financial interest by filing a Report of Foreign Bank and Financial Accounts (FBAR).
The FBAR is a form that merely provides foreign account information to the U.S. government. It is not filed with the tax return and no payment is made with it, however, the IRS could impose significant penalties for not timely filing it.
If you maintain undisclosed offshore assets, feel free to contact us about the Offshore Voluntary Disclosure Program for advice on minimizing any tax liability or penalties.