Yes. Just because you reside and/or have Bank Accounts, Assets, or Income overseas does not mean your Foreign Bank Accounts, Assets, or Income are safe from the Internal Revenue Service (IRS).
FATCA is the Foreign Account Tax Compliance Act. It is an IRS International Tax Law that is designed to reduce offshore tax evasion and tax fraud.
FATCA requires U.S. Taxpayers to disclose foreign bank accounts, foreign financial accounts, and foreign income to the IRS; otherwise the Taxpayer can be subject to extremely high fines, penalties, and outstanding tax liabilities.
Depending on the terms of the agreement between the U.S. and Foreign Country (IGA) at issue (although most IGAs are similar), the U.S. Government may be able to request a Levy (“Seizure”), Freeze or Suspension to be placed on the Foreign Account. This is especially true if the accounts are being maintained at the foreign branch of the US financial institution, such as Citibank.
If the IRS discovers you have foreign assets and/or income that were not reported on your tax return and/or FBAR through your tax filings or Voluntary Disclosure, the IRS may be able to place a levy on your accounts. The mere fact that the property, assets and/or income is located overseas does not prevent the IRS from placing a levy on your U.S. property and/or possibly your foreign money, accounts, and income.
Currently the IRS has a new offshore program in place for domestic and foreign U.S. Citizens, Legal Permanent Residents, and other subject to U.S. tax to become compliant while paying a small penalty ranging from a penalty waiver, up to 5%.
Get into Offshore Compliance to Avoid a Levy
If you have unreported foreign accounts and income, you can enter one of the Offshore Disclosure Program, get into Tax Compliance, and avoid an IRS Levy being issued.
Golding & Golding, A PLC
We have successfully represented clients in more than 1,000 streamlined and voluntary disclosure submissions nationwide and in over 70-different countries.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.