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No one ever wants to be audited. If you do find yourself in a position where the IRS is asking questions about your past returns or your company, you need to call a Maryland tax attorney right away. A tax professional will know how to respond to the IRS with the goal of minimizing or avoiding any possible penalties that could result from a finding that back taxes are owed. 

Many small businesses find themselves facing audits by the Internal Revenue Service. The IRS pursues small businesses because these companies often deal in cash and the taxing authorities want to make certain all income is being reported. The IRS also wants to ensure that small companies are in full compliance with the myriad of taxing regulations addressing everything from withholding of payroll taxes to submitting required quarterly tax payments.

When a United States citizen leaves the country and becomes an ex-pat, there is a common misconception that they no longer have to file annual U.S. tax returns or need to comply with IRS obligations. While this may be the case for some countries, it is not the case in the United States. As long as you remain a U.S. citizen, you will still have tax obligations no matter where you live or how long you may have spent living outside of the United States.

U.S. persons who have an interest in certain foreign accounts are required to submit an annual Report of Foreign Bank and Financial Accounts (FBAR).  Certain U.S. taxpayers are also subject to reporting requirements under the Foreign Account Tax Compliance Act (FATCA).  Last year, a record number of FBARs and FATCA reports were filed.  More FBARs and FATCA reports are being submitted in part because the IRS has been aggressively cracking down on anyone who doesn't let the IRS know about all offshore investments.

Each year, taxpayers with offshore accounts are required to file Reports of Foreign Bank and Financial Accounts (FBARs).  Failure to file these reports can have significant consequences, including substantial financial penalties. That said, anyone with money offshore needs to know the rules and comply with them.