Federal, State, Local and International Taxes - The Internal Revenue Service today
said avoiding taxes by hiding money or assets in unreported offshore accounts
remains on its annual list of tax scams known as the “Dirty Dozen” for the 2015
filing season.
"The recent string
of successful enforcement actions against offshore tax cheats and the financial
organizations that help them shows that it’s a bad bet to hide money and income
offshore,” said IRS Commissioner John Koskinen. “Taxpayers are best served by
coming in voluntarily and getting their taxes and filing requirements in
order.”
Since the first Offshore
Voluntary Disclosure Program (OVDP) opened in 2009, there have been more than
50,000 disclosures and we have collected more than $7 billion from this
initiative alone. The IRS conducted
thousands of offshore-related civil audits that have produced tens of millions
of dollars. The IRS has also pursued criminal charges leading to billions of
dollars in criminal fines and restitutions.
The IRS remains
committed to our priority efforts to stop offshore tax evasion wherever it
occurs. Even though the IRS has faced
several years of budget reductions, the IRS continues to pursue cases in all
parts of the world, regardless of whether the person hiding money overseas
chooses a bank with no offices on U.S. soil.
Through the years,
offshore accounts have been used to lure taxpayers into scams and schemes.
Compiled annually, the
“Dirty Dozen” lists a variety of common scams that taxpayers may encounter
anytime, but many of these schemes peak during filing season as people prepare
their returns or hire people to help with their taxes.
Illegal scams can lead to
significant penalties and interest and possible criminal prosecution. IRS
Criminal Investigation works closely with the Department of Justice (DOJ) to
shut down scams and prosecute the criminals behind them.
Hiding Income Offshore
Over the years, numerous
individuals have been identified as evading U.S. taxes by hiding income in
offshore banks, brokerage accounts or nominee entities and then using debit
cards, credit cards or wire transfers to access the funds. Others have employed
foreign trusts, employee-leasing schemes, private annuities or insurance plans
for the same purpose.
The IRS uses information
gained from its investigations to pursue taxpayers with undeclared accounts, as
well as the banks and bankers suspected of helping clients hide their assets
overseas. The IRS works closely with the Department of Justice (DOJ) to
prosecute tax evasion cases.
While there are
legitimate reasons for maintaining financial accounts abroad, there are
reporting requirements that need to be fulfilled. U.S. taxpayers who maintain
such accounts and who do not comply with reporting requirements are breaking
the law and risk significant penalties and fines, as well as the possibility of
criminal prosecution.
Since 2009, tens of
thousands of individuals have come forward voluntarily to disclose their
foreign financial accounts, taking advantage of special opportunities to comply
with the U.S. tax system and resolve their tax obligations. And, with new
foreign account reporting requirements being phased in over the next few years,
hiding income offshore is increasingly more difficult.
At the beginning of
2012, the IRS reopened the Offshore Voluntary Disclosure Program (OVDP)
following continued strong interest from taxpayers and tax practitioners after
the closure of the 2011 and 2009 programs. This program will be open for an
indefinite period until otherwise announced.
Please call to set up an
appointment to discuss this or any other aspect of your taxes. If you found
this Tax Tip helpful, please share it through your social media platforms.
(651)
621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
No comments:
Post a Comment