Offshore Tax Evasion Defense Expert Discusses Pros and Cons of Second IRS Offshore Voluntary Disclosure Initiative
The IRS is giving foreign account holders another chance to get back into the system with their Limited Amnesty disclosure program to expire in August 2011.
Last time the IRS offered this amnesty program in 2009, some 15,000 consumers with undisclosed offshore accounts fessed up, paying the IRS a collective $400 million in revenue. Hoping for a repeat, the IRS is offering the limited amnesty program again this year to give consumers a “last chance at getting back into the system.”
Our team’s national offshore tax evasion defense expert Brian Compton was quoted in Daily News Pulse for his tax relief advice that while consumers who fess up to the IRS will still have to pay steep penalties, the price tag is well worth it. According to Compton, “the alternative can be penalties of up to 200 percent to 300 percent of the amount owed, not to mention jail time.”
According to the Daily News Pulse article, in certain limited cases, an offshore penalty of 5% is payable, which applies to consumers who: (a) did not open or cause the account to be opened; (b) have exercised minimal, infrequent contact with the account; (c) have, except for a withdrawal closing the account and transferring the funds to an account in the United States, not withdrawn more than $1,000 from the account in any year covered by the voluntary disclosure; and (d) can establish that all applicable US taxes have been paid on funds deposited to the account (only account earnings have escaped US taxation).
Consumers holding undisclosed offshore accounts will have until Aug. 31, 2011, to step forward, file, and pay what is owed under the IRS’s Offshore Voluntary Disclosure Initiative. While this time around the penalty increased to 25% from 20% in 2009, it’s still better than sticking your head in the sand until the IRS finds you and severely penalizes you.
To learn more about the IRS Limited Amnesty Program for offshore bank account holders, click here.
Tax Resolution Services has an expert offshore tax evasion defense team that is ready to help you with your IRS tax problems. Give us a call at (888) 699-7630 for a free tax relief consultation or visit www.TaxResolution.com for more information.
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