Foreign Bank Account Report (FBAR) violators be warned that time is running out to report offshore bank accounts.
The time to file is now!
The second (and possibly the last) IRS amnesty program is set to expire on August 31, 2011. We had a recent press release hit about this called Tick, Tock, Tax – IRS Amnesty Program’s August 31st Deadline is Approaching Fast.
With no replacement program on the horizon, this voluntary tax disclosure encourages Americans who hold foreign bank accounts (FBAR) and owe back taxes on undeclared funds in offshore bank accounts, to be prompt and proactive about disclosing those foreign funds to the IRS in order to minimize severe tax penalties and/or chances of criminal prosecution. There are penalties for neglect on this matter.
It is not uncommon for Americans to hold foreign bank accounts, especially if they conduct business internationally. Currently, taxpayers are required to report all income from domestic and foreign sources but many still do not do so. Every year the government loses billions in tax revenues from offshore accounts held by Americans. In order to recover those losses, the government investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad. The IRS has scored recent successes in pressuring foreign banks to disclose information about their account holders, with the view to capturing those lost tax revenues, including hefty penalties amounting to $100,000, or half the value of the account, per year, for willful failure to file.
Compliance with FBAR regulations is a serious matter, not to be taken lightly. Offshore account reporting can be overwhelming and mistakes costly since many taxpayers do not understand all the requirements and often file incorrectly. With global banks under more pressure than ever to disclose U.S. accounts, those people with their accounts offshore are strongly encouraged without fear and anxiety to report and settle taxes due before this amnesty deadline expires. The August 31 deadline is not only to file the initial application but, also to submit the complete civil package that includes the amended income tax returns and delinquent FBARs.
Those consumers looking to take advantage of this IRS amnesty program would do well to consult a certified tax resolution specialist or offshore tax attorney with success in FBAR cases for advice and representation. This professional offshore tax-evasion defense attorney will take over all communications with the IRS, make the required disclosures, file FBAR reports, amend tax returns and help negotiate with the IRS for penalty abatement all on your behalf.
The amnesty program has many people coming forward before the IRS but the inherent complicated nature of FBAR matters is not a do-it-yourself project; hire a tax firm who has years of experience successfully representing clients before the IRS and who will confidently negotiate a structured IRS payment plan. Getting help from FBAR tax experts is a wise investment that will be good for you financially, legally and help put this worry behind you.
More Tax Help, IRS News and Tax Relief Tips:
- Finding Tax Help for IRS Tax Debt
- Tax Resolution Services interviewed by Terry Bradshaw
- Doctor Sentenced for Failing to File FBAR Reports
- Ask the Certified Tax Specialist – Small Business Back Taxes
- Got back taxes? It’s Never Too Late to File a Tax Return
Tags: Back Taxes, certified tax resolution specialist, delinquent taxes, Foreign Bank and Financial Accounts (FBAR), IRS enforcement, IRS payment plan, IRS penalties, IRS tax problems, tax attorney, tax attorneys, tax resolution expert