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