Even if you’ve just got a little bit of money stored in a foreign bank account, you need to pay close attention to the IRS Offshore Voluntary Disclosure Program. Specifically, you’ve got to know these 4 things:
1. The documents are a little different
You can’t just fill out “normal” tax documents and send them in. Instead, the IRS Offshore Voluntary Disclosure Program has its own unique document — called an FBAR. If you meet the standards for the program, you’ll have to file an FBAR every year.
2. The deadlines are different
Unlike taxes here at home, April isn’t a big month for the IRS Offshore Voluntary Disclosure Program. The deadline to submit your FBAR can change from year to year, but it’s usually sometime in August.
Unfortunately, you’re probably not thinking about taxes a whole lot in August. However, if you don’t file all of the paperwork in time, you may wind up getting a visit from an investigator! If you want to prevent that from happening, work with a tax lawyer that can help you take care of everything.
3. The “small guys” are getting busted, too
If you think that you don’t have to follow the rules of the Offshore Voluntary Disclosure Program because the IRS is only after the “big guys”, you’re playing a risky game.
The truth is, the rules of the IRS Offshore Voluntary Disclosure Program apply to anyone who has $10,000 or more stored in foreign bank accounts over the course of a calendar year. The IRS has thousands of investigators who are looking for anyone and everyone who’s breaking the rules. So, don’t think that you’re safe just because you’re one of the “small guys”!
Even if you barely meet the threshold, it’s a good idea to talk to a qualified tax lawyer who knows the ins and outs of the IRS. That way, you can make sure that you don’t inadvertently raise any red flags.
4. The penalties are harsh
If you do get caught in the crosshairs of the IRS Offshore Voluntary Disclosure Program, the end result may not be pretty. Under the rules of the program, the IRS can hit you with thousands upon thousands of dollars in penalties. If you break the rules badly enough, you can even wind up in jail!
That’s why it’s so important to find a tax lawyer who can work with the IRS. Without one, you have no chance at successfully negotiating lesser penalties. A good tax lawyer can talk to the IRS and try to work out a settlement.
You can get all of the Offshore Voluntary Disclosure help you need at www.kahntaxlaw.com!
