IRS Can Refer Unreported Overseas Accounts for Criminal Investigation

IRS Can Refer Unreported Overseas Accounts for Criminal Investigation

The enforcement of overseas account and asset reporting is a key priority for the IRS. With the recent trend of overseas compliance and enforcement, the IRS has increased the number of referrals to the special agents. After the Special Agents conduct their own research, if they reach the conclusion that a crime was committed, it may lead an indictment. That is why it is very important to stay in FBAR, FATCA and foreign reporting compliance.

Overseas Accounts are Not Illegal

It is perfectly legal to have accounts outside of the United States. There are many reasons to have an account:

  • investment purposes
  • business purposes
  • same-country currency
  • prior resident or employment in that country

The problem with overseas accounts is not the actually holding of the account, but rather the reporting.

Reporting Overseas Accounts

When a person has overseas accounts, oftentimes they will have an IRS reporting requirement. The reporting requirements will vary based on:

  • type of account
  • value of account

There are many different international information reporting forms. Whether or not a person is required to file a certain form will depend on the threshold filing requirements of the form, and if the filer meets the threshold requirements. It should be noted that a person may have several filing requirements for a single form.

Failure-to-Report Overseas Accounts Penalty

When a person has an overseas account they did not report, they are considered out of compliance. The failure to report the account(s) may lead to fines and penalties by the IRS. In recent years, the trend has been to increase the penalties due. Nevertheless, if the person can show reasonable cause, or otherwise qualifies for tax amnesty, the penalty may be reduced, eliminated or altogether avoided.

Golding & Golding (Board-Certified Tax Specialist)

We specialize exclusively in international tax, and specifically IRS offshore disclosure.

We have successfully represented clients in more than 1,000 streamlined and voluntary offshore disclosure submissions nationwide and in over 70-different countries. We have represented thousands of individuals and businesses with international tax problems.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants and Financial Professionals worldwide.

Less than 1% of Tax Attorneys Nationwide Are Certified Specialists

Sean M. Golding is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.

Recent Golding & Golding Case Highlights

  • We represented a client in an 8-figure disclosure that spanned 7 countries.
  • We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
  • We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
  • We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
  • We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced Streamlined Counsel?

How to Hire Experienced Streamlined Counsel?

How to Hire Experienced FBAR Counsel?

Generally, experienced attorneys in this field will have the following credentials/experience:

  • Board Certified Tax Law Specialist credential
  • Master’s of Tax Law (LL.M.)
  • Dually Licensed as an EA (Enrolled Agent) or CPA
  • 20-years experience as a practicing attorney
  • Extensive litigation, high-stakes audit and trial experience

Interested in Learning More about Golding & Golding?

No matter where in the world you reside, our international tax team can get you IRS offshore compliant. 

Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.