Top Things to Ask Maryland Offshore Bank Account AttorneysOffshore Account Update
Posted in on November 4, 2019
The U.S. tax laws on offshore bank accounts are complex and demanding for offshore account holders. Many taxpayers with previously undisclosed offshore accounts will want to come into compliance with tax reporting laws. Others may already be facing tax issues on their foreign accounts, such as IRS audits.
No matter the exact circumstances, these taxpayers will need Maryland offshore bank account attorneys to advise and represent them. But before hiring your attorney, be certain they are well-versed in offshore accounts under U.S. tax law. Here are some top questions to ask an offshore account attorney before retaining them.
What If I Have Unreported Offshore Accounts?
If you have unreported offshore accounts, you should be aware of a couple things: the IRS could catch you, and the consequences could be serious. Under the Foreign Account Tax Compliance Act (FATCA), foreign financial institutions must report accounts to the IRS which are held by U.S. account holders or face a stiff penalty. Accordingly, almost all foreign institutions will comply with this mandate. Therefore, if you fail to report your offshore bank account, your offshore bank may report it anyways.
The best option is to come into legal compliance on your offshore bank accounts. Depending on the extent of your past tax violations, you may have different options for doing so.
What are My Options for Voluntary Disclosures?
Maryland offshore bank account attorneys can help you come into compliance. One of the main vehicles for doing so are IRS voluntary disclosures. Under the 2018 Updated Voluntary Disclosure Program, taxpayers with previously undisclosed offshore bank accounts can come into compliance while avoiding criminal liability. This program has certain eligibility requirements, so your attorney can help determine whether you qualify.
For offshore tax violations that are non-willful, the taxpayer may be able to take advantage of other methods of coming into compliance. Under the Streamlined Filing Compliance Procedures, the taxpayer may certify that their failure to report foreign accounts was non-willful and submit delinquent or amended Foreign Bank Account Reports (FBARs) and tax returns. Or the taxpayer may be able to simply file delinquent FBARs without entering a formal program.
Selection of the ideal disclosure option involves many considerations. Your offshore tax attorney can advise on the best disclosure option for you.
What If an IRS Audit Targets My Offshore Accounts?
When an IRS audit targets your offshore accounts, you should seek legal assistance quickly. By the time you are audited, voluntary disclosures may no longer be an option, so you will need highly competent representation. Not only will you be facing potential tax penalties and fines, you may even be criminally prosecuted. An IRS audit attorney will be necessary for any litigation.
The Maryland Offshore Bank Account Attorneys at Thorn Law Group Can Help
If you are a Maryland taxpayer with offshore account tax issues, you should consult with the Maryland offshore bank account attorneys at Thorn Law Group immediately. For a confidential consultation, contact Kevin E. Thorn, Managing Partner, at 240-235-5096.Share This Post