Former IRS Attorneys Assisting Clients With Voluntary Offshore Account Disclosure
Many people who are U.S. citizens have offshore accounts held at foreign financial institutions. Aside from U.S. citizens, investors worldwide choose to hold their assets in foreign banks for myriad of legitimate reasons. In recent years, however, governments throughout the world – including the U.S. government -- have begun to crack down on investors with funds that are held offshore because of concerns regarding tax evasion.
Laws have been passed to impose more extensive obligations on banks and investors, including strict requirements for banks and individuals to report offshore funds. U.S. account owners and signatories on accounts, for example, must file Report of Foreign Bank and Financial Accounts each year if the aggregate (combined) value of offshore accounts was equal to or exceeded $10,000 at any time during the year.
Unfortunately, many U.S. investors don't know about the reporting laws and do not realize they have an obligation to alert the IRS of their offshore accounts. Many investors have failed to file the mandated Reports of Foreign Bank and Financial Accounts (FBARs) and some investors who did not file these forms have been penalized with civil fines totaling more than the value of assets in the undeclared account.
As news has hit of taxpayers being subject to such high penalties, concern has grown among the many investors with offshore funds that they did not previously declare. The IRS created the Offshore Voluntary Disclosure Program (OVDP) to capitalize on the concerns of U.S. investors and to prompt those investors to come forward and voluntarily provide information on accounts they previously did not disclosure.
If you are worried about your offshore accounts, it is imperative that you speak with a tax lawyer who has extensive experience assisting clients with foreign accounts. Consulting with an attorney should be the first step prior to participate in the OVDP, not all investors may be eligible and there may be serious downsides to participation. Thorn Law Group can help. Managing Partner Kevin E. Thorn is a former IRS attorney who knows exactly what the government expects in terms of offshore account reporting. We can help you understand your rights and will determine the best possible course of action for your individual situation.
Understanding Offshore Voluntary Disclosure
The OVDP facilitates the process of alerting the IRS when an investor fails to report foreign bank accounts and makes it possible for investors to declare offshore accounts that weren’t previously disclosed. Those who are deemed eligible to participate in the OVDP will be given amnesty from criminal prosecution that could potentially have resulted, had the IRS discovered misconduct on its own. Penalties will also be reduced for OVDP participants.
However, even with reduced penalties, substantial financial losses may still occur. Furthermore, not everyone is eligible to participate in the OVDP, and you may be disqualified if the IRS is already investigating you – among other potential problems. You don't want to attempt to participate if you cannot follow through, as the failure to complete the OVDP can bring your case to the attention of the IRS and lead to civil and criminal action being taken against you.
A tax attorney at our firm can help you to determine if the OVDP is a good option and, if it is, we will do everything possible to minimize your penalties and resolve your tax problems in a timely and confidential manner.
Contact Thorn Law Group to Resolve Offshore Account Issues
Thorn Law Group has worked hard to help taxpayers, including individuals and businesses, to navigate the complex U.S. tax code and to resolve tax issues caused by undeclared offshore accounts. As a former attorney for the IRS, Kevin E. Thorn knows how to help clients who are facing investigations into their foreign bank accounts and assets. To find out how our firm can help you resolve your offshore account issues, schedule a consultation with Managing Partner Kevin E. Thorn today at 202-349-4033.
