Earlier this week, Democrats offered a bill that will strengthen the IRS’s ability to crack down on tax cheats who “hide” their full income by using foreign bank accounts.

Following the latest UBS deal that brought 7,500 Americans forward who had previously concealed their foreign bank accounts from the IRS, this new bill “would impose new reporting requirements on foreign financial institutions doing business in the United States, and on American advisers who help United States residents invest abroad. Foreign institutions that do not comply would be hit with a 30 percent withholding tax on income from their American assets”–according to Associated Press.

This bill is estimated to raise $8.5 billion over the next ten years–an effort by the IRS to cash in on some of the $100 billion per year the government loses to overseas tax evasion.

For American taxpayers and business executives who wish to hold their monies overseas, it’s important to recognize that these foreign banks have been given a choice: either they report their American account holders or they don’t get to access the American capital markets.

Gone are the days where the wealthy can “store” some money away without being discovered for unpaid taxes. The IRS is stepping up its game to heighten international compliance from offshore banks to give up information instead of protecting the privacy of their account holders.

If you have an overseas bank account, it is advisable for you to disclose your foreign funds to the IRS instead of gambling that you will never be discovered. Oftentimes, the IRS penalties on back taxes of foreign funds can equate to almost the full amount in these foreign bank accounts. Don’t wait another day, take control of your financial future by getting tax help now!

Read more about how the new Democratic bill will help strengthen IRS powers for delinquent tax collection.

If you have been caught in IRS crosshairs for not paying taxes on your overseas money, you can still get professional tax help to get a penalty abatement. It’s not too late to save your financial future. Call us today at 1-866-477-7762 for a free consultation or visit our website at www.taxresolution.com

More Tax Help, IRS News and Tax Relief Tips:

1. Resolve IRS Back Taxes: Biggest Mistakes Taxpayers Makes When Faced with IRS Problems
2. Tax Help For Offshore Account Holders as Swiss Government Seeks to Salvage UBS Agreement
3. IRS Tax Relief: Seven Common Income Tax Relief Myths That Can Get You into IRS Trouble
4. Tax Help Options For Overseas Tax Evasion as UBS Pushes For Swiss-US Deal
5. Tax Help: How to Resolve Your Back Taxes & Prevent Tax Problems If You’re Short on Cash This Season

Tags: delinquent taxes, IRS debt, Michael Rozbruch, offshore tax settlement, penalty abatement for offshore accounts, tax attorney, tax evasion, tax expert, tax help

This entry was posted on Friday, October 30th, 2009 at 2:21 pm and is filed under Back Taxes, Penalty Abatement, Seeking Professional Tax Help. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.