In years past, many individuals and businesspersons placed their assets in offshore accounts as a means of evading U.S. taxes. Common offshore accounts ranged from Swiss bank accounts to accounts in the Cayman Islands, Hong Kong, and more. The U.S. Government has recently cracked down on American offshore-account holders through the Foreign Tax Compliance Act (FTCA).
The FTCA requires offshore financial institutions to provide full disclosure regarding U.S. offshore account holders. This is intended to expose any U.S. account holders who are evading taxes through their offshore accounts. Americans who are affected by these offshore account laws have the option to avoid criminal prosecution by the IRS by entering into the Offshore Voluntary Disclosure Program, protecting them from prosecution, and reducing any civil penalties.
The Offshore Voluntary Disclosure Program first became available in 2009, with the objective to mutually benefit the IRS and those with tax-evading offshore accounts. It saves the IRS hours of manpower and resources and allows foreign bank account holders the ability to avoid severe penalties. The program has been extended to allow disclosure until April 15th, 2018.
Those who do not disclose and are detected by the IRS could face:
A prison sentence ranging up to 10 years
Fines from $100,000 to $500,000
Why You Need a Tax Attorney for Offshore Accounts
Offshore accounts can be extremely beneficial, but can also cause problems in the event that the IRS comes knocking at your door. If you have been approached by the IRS regarding your offshore accounts, Palm Beach tax attorneyMichael K. Miller can help. He can also provide you with counsel and guidance if you are looking to set up an offshore account or if you currently have one and want to avoid any unnecessary run-ins with the IRS because of a misunderstanding.
“My experience working with Mr.Michael Miller was fantastic.”
My experience working with Mr.Michael Miller was fantastic. His expertise made navigating an unfamiliar and potentially intimidating subject matter possible. He was easy to contact and communicate with through out my case, I appreciated his efficiency , promptness and professionalism all while being friendly and personable. I have already recommended him to friends and wanted to spread the word here as well.
