Offshore Bank Accounts – Advice on how report to the IRS – Tax Attorneys, Former IRS   1-866-700-1040

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You can call us today for free tax consultation and we can discuss with you all the issues regarding offshore bank accounts and advice on how and when to report to the Internal Revenue Service.
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The IRS is on the hunt and prowl for those taxpayers placing their funds in offshore bank accounts. The IRS has formed various tasks force to go ahead and to pursue the collection of those hiding and/or evading their money from the United States government.
Every taxpayer has a different situation and there are no two situations the same. Because of the recent change in tax laws in the IRS pursuit of the filing of Fbar it is beneficial for taxpayers to find IRS before the IRS finds them.
 OVDP has been very successful
The Offshore voluntary disclosure programs have so far resulted in the collection of more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures made under the first two programs.
In addition, another 1,700 disclosures have been made under the new program announced in January.
The voluntary disclosure programs are part of a wider effort by the IRS to stop offshore tax evasion and ensure tax compliance.
This includes beefed up enforcement, criminal prosecution and implementation of third-party reporting through the Foreign Account Tax Compliance Act.
The IRS also closed a loophole that’s been used by some taxpayers with offshore accounts. Under existing law, if a taxpayer challenges in a foreign court the disclosure of tax information by that government, the taxpayer is required to notify the U.S. Justice Department of the appeal. This close loophole can can spell doom for many taxpayers.
The IRS said that if the taxpayer fails to comply with this law and does not notify the U.S. Justice Department of the foreign appeal, the taxpayer will no longer be eligible for the Offshore Voluntary Disclosure Program.
The IRS also put taxpayers on notice that their eligibility for OVDP could be terminated once the U.S. government has taken action in connection with their specific financial institution.
Slowly and surely the United States government is being successful in getting treaties with almost every country for their account holders to turn over information to the US government.
The IRS is aware that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs). Some of these taxpayers have recently become aware of their filing requirements and want to comply with the law. Most people have absolutely nothing to worry about.
To help these taxpayers, the IRS offered the new procedures that will allow taxpayers who are low compliance risks to get current with their tax requirements without facing penalties or additional enforcement action.
These people generally will have simple tax returns and owe $1,500 or less in tax for any of the covered years.  The majority of taxpayers fit in the simple tax return category.
Canadian Registered Retirement
The IRS also announced that the new procedures will allow resolution of certain issues related to certain foreign retirement plans (such as Canadian Registered Retirement Savings Plans).
In some circumstances, tax treaties allow for income deferral under U.S. tax law, but only if an election is made on a timely basis. The streamlined procedures will be made available to resolve low compliance risk situations even though this election was not made on a timely basis.
The new procedures.
Taxpayers using the new procedures  will be required to file delinquent tax returns along with appropriate related information returns for the past three years, and to file delinquent FBARs for the past six years. It is best to check with a tax professional before filing these back tax returns.
Submissions from taxpayers that present higher compliance risk will be subject to a more thorough review and potentially subject to an audit, which could cover more than three tax years.
 IRS wants people back in the system
This program  which helps bring people back into the tax system  will be open for an indefinite period until otherwise announced. IRS will note this program and to the well runs dry.
The program is similar to the 2011 program in many ways, but with a few key differences. There is no set deadline for people to apply.
The terms of the program could change at any time going forward.
 The offshore penalty has been raised
Under the current OVDP, the offshore penalty has been raised to 27.5 percent from 25 percent in the 2011 program.
The reduced penalty categories of 5 percent and 12.5 percent are still available.
Call us for free tax consultation today and speak  directly to offshore bank account experts. Our  calls are under attorney-client privilege if requested.
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