Get Help From The Offshore Voluntary Disclosure Program (OVDP)
In 2012 congress extended the popular voluntary disclosure program designed to give partial amnesty for US citizens that have bank accounts in foreign banks. The program has been modified and re-launched for 2014 and is currently in effect but the IRS has stated it can be cancelled at any time.
How Can Reporting My Offshore Income Help Me?
To understand how the voluntary disclosure program can help you must first understand the laws around offshore accounts and income and how harsh the government can be.
In recent years the government's efforts efforts to find individuals and businesses with offshore accounts has been ramped up as it is not just seen as a way to evade taxes but also increasingly used for crimes such as money laundering and funding terrorist groups. AS such the penalties for not reporting this money is very severe. The trigger for much of the IRS punishment is failing to file what is known as the FBAR form (Form TD F 90-22.1 Report of Foreign Bank and Financial Accounts).
The law states that United States citizens must file an FBAR and report their income if that have an account that they own, or are a signer on if the balance of the account has exceeded $10,000 at some time during the year in a financial account outside the United States.
If the IRS finds the accountholder has willfully failed to file an FBAR it may be seen as a felony and the penalties are fines up to $250,000 and 5 years of jail time. Additionally civil penalties for willfully failing to file are $100,000 or 50% of the account balance which ever is a larger amount. Smaller but still severe penalties are assessed for those who have be found to not file from negligence.
As you can see being caught not reporting your offshore accounts by the IRS carries a very harsh punishment. With the above in mind you can understand how the voluntary disclosure program can protect your interest.
The voluntary offshore disclosure program will provide amnesty from the harsh federal and civil penalties.
No it is not cost free, but getting current on the taxes will mean not worrying about some day facing the IRS in federal court for willfully failing to report your offshore income.
A helpful program but no free lunch.
While the OVDP allows for U.S. citizens to come clean with their foreign income with going to jail, it by no means gets you out of paying taxes that are due.
Once you have determined to enter the voluntary disclosure program be prepared that you must file FBAR forms to report your offshore income for every year that you have not filed. The subsequent tax assessments are subject to penalties and interest the same as any other delinquent taxes.
How Do I Move Forward Safely To Enter The Voluntary Offshore Disclosure Program?
As with all difficult IRS problems retain an experienced attorney that specializes in tax law. Pearson Butler firm has decades of experience helping clients successfully resolve IRS debt issues. Attorney Jim Gilland will review the specifics of your case, and your information will be 100% private protected by the attorney-client privilege. Once we have the details of your situation we will craft a plan of action to begin the OVDP with the best possible outcome.
Contact Pearson Butler Today and put your IRS problems behind you.