Offshore Account UpdatePosted in on August 26, 2014
Taxpayers can take advantage of voluntary disclosure opportunities if they have offshore accounts that they have not properly reported. By participating in disclosure programs including the Offshore Voluntary Disclosure Program (OVDP) for foreign bank accounts, it is possible to limit penalties and avoid criminal prosecution.
Read MoreOffshore Account UpdatePosted in on August 19, 2014
The Offshore Voluntary Disclosure Program (OVDP) limits the penalties faced by taxpayers who failed to file the Report of Foreign Bank and Financial Accounts (FBAR). FBAR must be filed every year by any U.S. citizen who has offshore accounts, even if the citizen is living abroad in the country where the account is held. There is a streamlined OVDP procedure, but unfortunately early indicators suggest that very few people will be found to be eligible.
Read MoreOffshore Account UpdatePosted in on July 25, 2014
If you have an undisclosed foreign account or have failed to file a Report of Foreign Bank Account and Financial Accounts Report (FBAR), you face significant civil penalties and even potential criminal prosecution. The Internal Revenue Service is dedicating more resources to investigating offshore accounts and numerous foreign banks are currently under investigation and may turn over customer information.
Read MoreIf you have an account offshore, the Report of Foreign Bank Account and Financial Accounts Report (FBAR) must be filed each year with the Internal Revenue Service to declare the account. If you have failed to file your FBAR and have not disclosed your foreign accounts, you could face penalties. You may be fined and even prosecuted for felony tax evasion and potentially sent to jail.
Read MoreOffshore Account UpdatePosted in on July 20, 2014
If you have a foreign account held offshore with more than $10,000 in it, you are required to report the account to the Internal Revenue Service. If you fail to file a Report of Foreign Bank and Financial Accounts (FBAR) form and you do not disclose the account to the IRS, you could potentially face criminal prosecution and civil penalties.
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