Paid Estimated IRS Tax but didn’t File U.S. Tax Returns (Offshore Edition)
Some of you entrepreneurs are pretty crafty, aren’t you?
At some point, you came to the realization that you have unreported foreign accounts, assets, investments, and/or income. You also realize that you never reported the money or assets to the IRS, so what do you do?
You don’t actually file taxes, but you pay estimated taxes. In other words you want to cutoff any failure-to-pay penalties, by paying taxes you may owe, but are not ready to get into full IRS Offshore Compliance.
You figure, you’ll wait until your Maximum Balance is reduced, sufficient so that the FBAR/FATCA penalty is minimized.
The problem is, this is an intentional omission — which is a form of willfulness and may prevent entry into the Streamlined Program or Reasonable Cause.
And Then the IRS Ends OVDP…
For those of you crafty enough to attempt this strategy, you know not h to submit under Streamlined – no matter what Junior IRS Offshore Disclosure Lawyers with no real world experience try to sell you. Read about the dangers of going Streamlined when you are willful.
Since you were knowingly/willfully not reporting your foreign information, if you were contacted or otherwise outed (read: Whistleblower) you may have some pretty tough penalties to deal with.
Now, you are scared and unsure what to do.
Don’t Worry — You Still Have Options
Recently, the IRS Updated the IRS Voluntary Disclosure.
Under the revised terms, the FBAR penalties may be worse than they were in OVDP, but you may be able to reduce the penalties.
And, if you don’t have unreported foreign accounts and only foreign businesses, you may be in luck (updated IRM Voluntary Disclosure Program here).
Get Into Compliance with Experienced Counsel
Offshore Disclosure is complex. It is a specialty area of tax law, which requires a experience firm that specializes exclusively in IRS Offshore Disclosure.
Who Decides to Disclose Unreported Money?
What Types of Clients Do we Represent?
We represent Attorneys, CPAs, Doctors, Investors, Engineers, Business Owners, Entrepreneurs, Professors, Athletes, Actors, Entry-Level staff, Students, Former/Current IRS Agents and more.
You are not alone, and you are not the only one to find himself or herself in this situation.
How do you Vet out Potential Attorneys?
Three words: Credentials, Experience, Education.
Golding & Golding, Board Certified in Tax Law
We have successfully represented clients in more than 1,000 streamlined and voluntary disclosure submissions nationwide and in over 70-different countries.
Golding & Golding is the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.
- Learn more about the Board-Certified Tax Law Specialist credential
- Learn more about the IRS Enrolled Agent (EA) credential
- Learn more about Golding & Golding’s Case Accomplishments
- Learn more about Golding & Golding Testimonials from prior clients
Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Golding's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.