The IRS has seemingly limitless resources to investigate taxpayers accused of failing to pay their taxes. In recent years, the IRS has devoted substantial efforts to locating offshore account holders who haven't properly reported their assets each year. Whether the IRS has already discovered you are in violation of offshore compliance reporting requirements or not, taking a proactive approach ASAP can protect your rights and minimize the potential penalties you face due to unreported offshore assets.
Though we encourage cooperation with tax authorities when appropriate, we are vigilant in protecting our clients from self-incrimination while avoiding prosecution and criminal charges. Depending on the circumstances, solutions can often be found in the form of streamlined reporting procedures, penalty abatement, or payment plans of back tax obligations, including interest and penalties.
Foreign Compliance & Reporting Resolution Services include (as applicable):
- Foreign bank account and foreign entity reporting (FBAR)
- FATCA impact analysis & compliance plan development
- Foreign trust reporting and compliance
- Evaluation of appropriate disclosure options
- Streamlined filing compliance procedure (domestic and international)
- International tax audits and investigations
- Cryptocurrency tax reporting and compliance
- High income non-filer issues
- Offshore private banking compliance
- Form 5471 filing issues
- Foreign tax credit audits
- Foreign earned income exclusion audits
During your free initial consultation, we will spend time with you to understand your unique needs, concerns and goals as it relates to your offshore tax claim defense. And as always, the consultation is protected by attorney-client privilege.
NOTE: We represent clients who reside inside and outside the U.S. Face-to-face meetings are NOT required.
- Analyze your offshore holdings and determine the best approach to bring you fully into IRS compliance.
- Ensure applicable penalties are minimized through appropriate tax restructuring and resolution measures during IRS submissions.
- Submit appropriate filings to the IRS (and FINCEN as applicable) to bring you into legal compliance.
- Establish a strategy moving forward to ensure compliance is maintained.
A. FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
Q. Do I need to report my foreign accounts?
A. The Bank Secrecy Act requires that a Form FinCEN 114, Report of Foreign Bank and Financial Accounts (FBAR), be filed if the aggregate balances of such foreign accounts exceed $10,000 at any time during the year. This form is used as part of the IRS’s enforcement initiative against abusive offshore transactions and attempts by U.S. persons to avoid taxes by hiding money offshore.
Q. Are penalties assessed if I've failed to report my offshore account(s)?
A. Yes. The penalties for FBAR noncompliance are much larger than civil tax penalties ordinarily imposed for delinquent taxes. The penalties for noncompliance may include a fine of not more than $500,000 and imprisonment of not more than five years, for failure to file a report, supply information, and for filing a false or fraudulent report.
Q. How will the IRS discover my offshore account(s)?
A. The IRS has established a Special Unit to disseminate bank information received from foreign banks and compare it to the forms and information reported by U.S. taxpayers on their tax returns. In addition, this Unit is able to review previously filed FBAR’s to determine whether all income was reported on each income tax return.
Q. What is the cost of your offshore compliance/legal services?
A. Our fees are based on our flex-fee structure, and all costs are pre-approved by you when you decide to hire us. We offer payment plans, if needed, and set our fees so you do not have to worry about unexpected legal bills. There are no surprises, no add-ons. Because every situation is different, we recommend you Schedule a Consultation so we can discuss your case in detail.