What if I Didn’t Report to the IRS?
Unreported Income Penalties: The IRS devotes a large part of their time and resources to trying to uncover sources of significant unreported income. This may include unreported foreign income and/or domestic income. It may also involve undisclosed offshore accounts.
The statutes of limitations allow the IRS the IRS to issue unreported income penalties for many years after the returns were due.
There are various penalties a person can be found liable for such as:
- Failure-to-File Penalty
- Failure-to-Pay Penalty
- Underreporting Penalty
- IRS Foreign Reporting Penalty
- Fraud Penalty
Common questions we receive include:
- What if I did not report income?
- What if the income is from overseas?
- What if I already paid foreign taxes?
- Am I guilty of tax fraud or evasion?
- Will I go to jail?
- Can I reduce or avoid penalties?
IRS Penalties for Unreported Income
Since the IRS is understaffed, it has to direct its resources to situations which are most likely to yield the highest dollar return. And, typically that involves unreported income penalties.
It should be noted that the IRS does not just focus on “whales,” as people would like to believe. Rather, the IRS focuses essentially anywhere it thinks it can recover significant tax, penalties and interest.
In recent years, the IRS has focused on high-dollar issues involving:
- Foreign Passive Income
- Foreign Business Earnings
Unreported Income may lead to an IRS Criminal Investigation
It is important to note that not everyone who has unreported income may get hit with unreported income penalties, such as monetary fines or worse, but some do — and the penalties can be intense.
With that said, there are IRS Tax Amnesty programs available to assist you with safely getting into compliance.
Common crimes a person may commit involving unreported income include:
- Tax Fraud
- Tax Evasion
- Money Laundering
- White Collar Crime
Golding & Golding: About Our International Tax Law Firm
Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20 years of experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
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 Offshore Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
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.