The Internal Revenue Service’s (IRS) Voluntary Disclosure Practice and its Streamlined Filing Compliance Procedures provide ways for individual and corporate taxpayers to mitigate their liability for failing to timely disclose offshore accounts as required by law. However, while the IRS’ Voluntary Disclosure Practice and Streamlined Filing Compliance Procedures offer significant benefits when utilized effectively, there are certain risks associated with voluntary disclosure as well. As a result, U.S. taxpayers must be extremely careful to avoid mistakes that could potentially lead to unnecessary penalties, and they must rely on the advice of counsel when disclosing their offshore accounts to the IRS.

Under federal law, the penalties for tax evasion include six-figure fines and up to five years of federal imprisonment. Other tax-related crimes carry even greater penalties. While it is possible to avoid criminal prosecution through the Internal Revenue Service’s (IRS) Voluntary Disclosure Practice, there are several critical factors you need to consider before admitting to the commission of a federal crime. Here, New Jersey IRS voluntary disclosure lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, provides an introduction to what you need to know.

FinCEN Form 114, better known as a Report of Foreign Bank and Financial Accounts (FBAR), is a federal tax form that must be filed by taxpayers who own or have a financial interest in certain types of offshore accounts. The FBAR rules are complicated and failing to properly file FBARs when required can lead to substantial IRS penalties.

In 2018, the Internal Revenue Service (IRS) joined forces with tax authorities in four other countries to form the Joint Chiefs of Global Tax Enforcement, known as the J5. In 2020, the J5 announced its first multinational tax evasion investigation, and it warned that banks and taxpayers should expect more similar efforts going forward.

With 2020 just around the corner, it is time to take a look back at the topics that had us talking during 2019. While federal tax law may not be a riveting topic by most people’s standards, there were actually some pretty newsworthy developments over the course of the year. In addition to discussing hot topics in federal tax law, we published several articles with practical tips for New Jersey taxpayers as well. Here is a look back at our top nine articles from 2019: