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Offshore Banking

Avoid Penalties & Prosecution. Disclose Offshore Foreign Banking w/OVDP (formerly OVDI) and Get Compliant Today!

Hoping to repeat the success of the 2009 and 2011 Offshore Voluntary Disclosure Initiatives (OVDI) that has raised nearly $4.4 billion and counting in new tax revenue, on Jan 9th, 2012 the IRS announced a new OVDP – Offshore Voluntary Disclosure Program – with as-of-yet no expiration date. Like the 30,000 offshore account owners who came forward under the first two initiatives, those seeking leniency won’t get IRS approval if federal investigators have already started probing the applicants’ accounts. And like the earlier programs, those approved won’t face criminal prosecution. Because this 2012 OVDP can potentially be recalled at any time, we encourage those with overseas income and unreported assets to get represented immediately!

Report Your Foreign Banking Now with Voluntary Disclosure!

By coming forward, those with offshore bank accounts can help protect their assets and guard themselves against both criminal prosecution and inflamed penalties that could eat up the majority of their offshore accounts. The IRS has made collection of hidden bank accounts a top priority, and have made coming forward a requirement for anyone with offshore accounts exceeding $10,000.

Terms of the 2012 OVDP (formerly OVDI) include:

  • A 27.5% penalty on the amount in the offshore accounts in the year from 2003 to 2011 with the highest aggregate balance. That’s up from 25% under the earlier 2011 program, which also covered only a six-year period. Participants must also pay back-taxes and interest for up to eight years, plus accuracy and delinquency penalties.
  • A lower, 12.5% penalty for those whose previously secret accounts did not hold more than $75,000 for any year from 2003 to 2011. And an even lower 5% penalty limited to special circumstances, such as those who inherited offshore accounts and had little involvement with them.

If you have unreported foreign assets, we can represent your interests and help you come forward to avoid criminal prosecution. The IRS is looking favorably upon those who voluntarily report their overseas banking activity, and have encouraged those hiding assets to come clean or face severe penalties.

Ways we can help with OVDP (offshore voluntary disclosure program)

  • Criminal tax representation.
  • FBAR Compliance and Voluntary Disclosure.
  • Preparation of all forms required by the Offshore Voluntary Disclosure Initiative.
  • Original or amended income tax returns.
  • Offshore Voluntary Disclosures Letters.
  • Form 433-A, Collection Information Statement for Wage Earners and Self-employed Individuals, or Form 433-B, Collection Information Statement for Businesses, as appropriate.
  • Foreign Account or Asset Statements.
  • Penalty computation worksheet showing the applicant’s determination of the aggregate highest account balance of his/her undisclosed offshore accounts, fair market value of foreign assets, and penalty computation.
  • Agreements to extend the period of time to assess tax (including tax penalties) and to assess FBAR penalties.
  • Form TD F 90.22-1, Report of Foreign Bank and Financial Accounts, for foreign accounts maintained during calendar years covered by the voluntary disclosure.
  • A statement identifying all offshore entities for the tax years covered by the voluntary disclosure, whether held directly or indirectly, and your ownership or control share of such entities.
  • Forms 3520, 3520-A, 5471, 5472, 926 and 8865 for all tax years covered by the voluntary disclosure.
  • Amended estate or gift tax returns (original estate or gift tax returns, if not previously filed) for tax years covered by the voluntary disclosure necessary to correct the under reporting of assets held in or transferred through undisclosed foreign accounts or foreign entities.
  • A statement whether the amended returns involve PFIC issues during the tax years covered by the 2011 OVDI period.
  • Ordering of copies of offshore financial account statements reflecting all account activity for each of the tax years covered by your voluntary disclosure. Provide an explanation of any differences between the amounts reported on the account statements and the tax returns.
  • Negotiations with the Revenue Agent once the case is accepted into the Voluntary Disclosure Initiative for the lowest penalty possible.
  • Negotiations with the IRS on the assessed offshore penalty. Preparation of the tax resolution, such as an Offer-in-Compromise, Installment Agreement, Partial Pay Installment Agreement, etc.

FBAR Background

The original FBAR created the Bank Secrecy Act, which gave the Department of Treasury authority to establish record keeping and filing requirements for U.S. persons with financial interests in or signature authority or other authority over financial accounts maintained with financial institutions in foreign countries.

This provision of the law requires that a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), be filed if the aggregate balances of such foreign accounts exceed $10,000 at any time during the year. This form is used as part of the IRS’ enforcement initiative against abusive offshore transactions and attempts by U.S. persons to avoid taxes by hiding money offshore. This includes any interest a US person has in:

  • Offshore bank accounts
  • Offshore mutual funds
  • Offshore hedge funds
  • Offshore variable universal life insurance policies
  • Offshore variable annuities a/k/a Swiss Annuities
  • Debit card and prepaid credit card offshore accounts

As this may be the last opportunity for taxpayers to resolve unreported foreign income issues without criminal prosecution, we recommend that taxpayers in this situation act immediately and seek assistance from an IRS debt tax relief attorney.

FATCA – Foreign Account Tax Compliance Act

The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010. Per the IRS guidelines:

  • FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts
  • U.S. individual taxpayers must report information about certain foreign financial accounts and offshore assets on Form 8938 and attach it to their income tax return, if the total asset value exceeds the appropriate reporting threshold. Form 8938 reporting is in addition to FBAR reporting.
  • To avoid being withheld upon, a foreign financial institution may register with the IRS, obtain a Global Intermediary Identification Number (GIIN) and report certain information on U.S. accounts to the IRS.

Getting Help with your Offshore Foreign Banking Issue/FBAR/OVDI/FATCA

The first step towards successful resolution is to acknowledge that your tax debt and offshore banking issue won’t go away on their own and to seek professional assistance. Our firm of tax relief attorneys and tax relief professionals has helped thousands of individuals and businesses just like you stop forced collections and finally resolve their tax debt.

Call 888-978-6747 or Click HERE!

Our tax relief professionals will take the time to discuss your issue free of charge, and help map out the best solution moving forward. Rest assured, all information is confidential, and nothing will be shared.

We understand that you have many options when it comes to choosing the right tax relief firm, and we welcome the opportunity to help you patiently through this process and bring closure to this important financial consideration.

Don't tackle the IRS alone. We can help.