From the Tax Law Offices of David W. Klasing -When should you consider making an offshore voluntary disclosure?

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Tax Law Offices of David W. Klasing, PC

Mar 12, 2020, 06:37 ET

IRVINE, Calif., March 12, 2020 /PRNewswire/ -- Under a series of tax laws, intergovernmental agreements (IGAs), and international treaties, such as the Foreign Account Tax Compliance Act (FATCA), offshore banks are obliged and now routinely report certain U.S. account holders to the Internal Revenue Service.

Is your Foreign bank under criminal investigation? Do you have unreported offshore financial accounts including checking accounts, savings accounts, mutual funds, hedge funds? Do you have un-reported taxable income coupled with non-filed required foreign information returns related to offshore investments, including, partnership interests, business ownership of any kind, income generating assets of any kind or life insurance? Have you received a letter from your foreign bank indicating it is going to release information about you to the IRS? Have you been using a CPA, EA or CTEC certified preparer for the last six tax years? Did your tax professional make it your responsibility to report foreign bank accounts to them in their engagement letter or in their organizer? Did they ask you about foreign accounts and income generating assets during your interview or by email? Have you consistently marked the check box on schedule B to indicate you did not have a foreign account? Is your name likely to come up in connection with the Panama Papers? Did you move your offshore funds to another bank after the bank you were with came under criminal tax investigation? Did your actions or inactions cause $30,000 or greater of tax loss to the federal government? Has your name likely been provided as part of an offshore John Doe summons request? Did you receive an inheritance from a nonresident alien exceeding $100,000 that you did not report? Are you a beneficiary of a foreign trust?

If you answered "yes" to any of these questions, you may be in danger of civil or criminal FATCA or FBAR penalties and potential criminal tax charges. Work with an FBAR attorney who can help you minimize tax penalties by reporting your offshore accounts properly. Discuss your foreign account reporting requirements with an experienced FATCA attorney – before you find yourself at the center of a foreign account tax audit (or worse, a criminal tax investigation).

Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]

SOURCE Tax Law Offices of David W. Klasing, PC