How Maryland International Tax Attorneys Can Help With an Offshore Bank Account AuditNews, Offshore Account Update
Posted in on July 23, 2019
It is perfectly legal for U.S. taxpayers to hold funds in offshore bank accounts, and there can be many advantages to doing so. Whether you are looking for asset protection from litigation or foreign investment opportunities, there are a number valid and perfectly legal reasons for maintaining foreign accounts. Nonetheless, offshore account holders need to be wary of IRS audits of those accounts.
If you are facing an IRS audit of your offshore account, working with skilled Maryland international tax attorneys is in your best interests. Offshore accounts are a prime audit target for the IRS, and you will need an experienced international tax lawyer to represent you.
Why Does the IRS Target Offshore Bank Accounts for Audits?
While offshore accounts are perfectly legal, they have often been used to hide assets and income from tax authorities, including the IRS. The passage of the federal Foreign Account Tax Compliance Act (FATCA) was meant to curb those abuses. Not only does FATCA require U.S. taxpayers to disclose their foreign accounts, it also compels foreign financial institutions to report foreign assets that are held by U.S. account holders to the IRS.
While FATCA makes it easier for the IRS to discover offshore accounts, the IRS also devotes significant resources to auditing those accounts. In addition, there are a host of substantial penalties for failing to disclose foreign accounts. Criminal prosecution is even a possibility.
In this environment, it is extremely important for offshore bank account holders to be prepared for IRS audits of those accounts. The first step in preparation is to seek the assistance of top-notch Maryland international tax attorneys.
How Can a Maryland International Tax Attorney Help?
If you are located in Maryland, one of our international tax attorneys can guide you through the IRS audit process. If a taxpayer has not disclosed all offshore accounts in the past, the attorney can help bring them into compliance. If the result of the audit is unfavorable for the taxpayer, the tax attorney can appeal the decision or even litigate, if necessary.
It is best to retain an attorney who is well-versed in international tax issues. There is a real potential for criminal investigation and prosecution resulting from an IRS audit of offshore accounts. At the same time, the attorney should understand the procedures for IRS audits and appeals in order to effectively guide the taxpayer through the process.
If taxpayers who are facing offshore account audits work with Maryland international tax attorneys who are competent in both of these areas – international tax and IRS audits – they will be in the best position to avoid or minimize civil and criminal penalties.
The Maryland International Tax Attorneys at Thorn Law Group Can Help With Audits of Offshore Bank Accounts
If you are Maryland taxpayer facing an IRS audit of your offshore bank account, contact the Thorn Law Group immediately to consult with their Maryland international tax attorneys. Contact Kevin E. Thorn, Managing Partner, at 240-235-5096, to schedule a confidential consultation.Share This Post