Offshore Account Holders Can Still Seek Amnesty from Criminal Prosecution and Lower IRS Penalties Till September 23

UBS and the U.S. and Swiss governments are nearing a settlement over the Swiss bank’s forced disclosure of 52,000 names of  U.S. clients suspected of tax evasion.

While the final form of agreement is not yet in place, there are many implications for U.S. taxpayers, including innocent offshore account holders who did not use their Swiss accounts to evade taxes. They may be heavily investigated, so it will be important for them to know their rights and seek a tax attorney’s representation when necessary.

Details of the UBS agreement may also affect the pace of activity under an IRS amnesty program that lets Americans reveal secret Swiss bank accounts in exchange for lower penalties. Through the program, taxpayers with unreported income in foreign bank accounts van avoid criminal prosecution and lower IRS penalties in exchange for voluntary disclosure of their foreign account and payment of all back taxes plus interest.

Taxpayers are required to report all income from domestic and foreign sources. I recently blogged about requirements for offshore account holders to file a Report of Foreign Bank and Financial Accounts (FBAR), which cannot be filed with  federal tax returns. The deadline to file with the Department of the Treasury in Detroit, Michigan has been extended from June 30, 2009 to September 23, 2009. While there may be some confusion about who is required to file an FBAR, the IRS is providing extra time for taxpayers to seek tax help.

Remember that a tax attorney or tax resolution specialist can help you avoid IRS problems if your offshore account comes under scrutiny by the IRS.  You can contact us for a free consultation to see if you qualify for a voluntary disclosure settlement.

According to Reuters, the days of secret bank accounts are numbered for Americans.

The deal is also expected to put European tax dodgers on notice as other governments are encouraged to seek out hidden accounts.

U.S. authorities believe the 52,000 U.S.-based clients of UBS may be hiding nearly $15 billion of assets.

For more IRS news and tax help tips, follow me on Twitter @taxresolution

More Tax Help, IRS News and Tax Relief Tips:

  1. Tax Help For UBS Account Holders Seeking IRS Tax Relief For Tax Evasion Charges
  2. Income Tax Help: IRS Won’t Let You Off the Hook Just Because You Claim Sovereignty
  3. Tax Help Options For Overseas Tax Evasion as UBS Pushes For Swiss-US Deal
  4. IRS Holds Taxpayers Responsible – No Matter What
  5. Swiss Pressured to Reveal All Offshore Accounts

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3 Responses to “Offshore Account Holders Can Still Seek Amnesty from Criminal Prosecution and Lower IRS Penalties Till September 23”

  1. Jonathan D. Says:

    That said, there are still a whole host of legitimate, and very savvy reasons to invest offshore, not the least of which is privacy, (though not in terms of from the IRS from a legal perspective) asset protection (also not from the IRS, in terms of for nefarious reasons,) but other than that, great reasons, especially in terms of having investment opportunities that would otherwise only be open to the already wealthy in this country, and of course, those with decent credit, and a financial education.

    Not that offshore investing is exactly a leveler for the poor either, but not a bad tool for the savvy middle to upper middle class. An annuity here, an annuity there; could add up to some real money.

  2. IRS Will Stop at Nothing for U.S. Names of Swiss Bank Account Holders Who May be Guilty of Tax Evasion | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] Resolution Services

  3. Tax Help For UBS Account Holders Seeking IRS Tax Relief For Tax Evasion Charges | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] have not paid your taxes, you can still decrease the severity of your charges by participating in voluntary disclosure. Currently, the IRS offers an Amnesty Program for tax evaders who come forward before their names [...]

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