Opposed to reception which is very popular, Bank security act will require filling FBARs (foreign bank account reports) for all offshore bank accounts. This was first done in 1970. The attention of the public was focused on offshore bank accounts starting with 2008, which was the year when in June, IRS announced their failing ‘John Doe Summons’ looking for and asking for an order from Federal court of Miami to permit to IRS to be given information about USA taxpayers using Swiss banks and their bank accounts in committing evasion of taxes. And they got the information they asked for, about 4 500 persons had their Swiss accounts which were secret. So, attorneys for tax litigation needed to assist all the clients who had that secret accounts to get their tax affairs fixed, and it happened long time before the focusing of IRS on UBS.
Offshore bank accounts with problems are not only from Swiss banks. In the year of 2008 the government permanent Subcommittee and Homeland Security bring in their report accusations for the Bank of Lichtenstein, which promoted tax evasions, and did that by using false foreign shell companies, charitable trusts, straw man settlors, captive trustees, multiple transfers among some companies, anonymous transfers, false business trips, and the use of credit cards which were foreign to draw some accounts. All this was done in order for offshore bank accounts to be hidden.
But, by 2014, 106 banks from Swiss were announced by the IRS as the banks who signed up that they are going to pay penalties for giving them a privilege to turning in the customers having something with tax frauds of failing to file FBARs. Now the problems concerned with taxes which the owners of foreign bank accounts have are connected not only to those coming from Switzerland but to all the others. In almost every country in the world, since the FATCA( foreign account tax compliance act), all financial institutions and banks have to provide the information about foreign accounts to Internal revenue service. All the people living in the USA, especially the immigrants from Iran, India, Israel, etc., having their accounts in home countries, no matter if they have a green card of are just present in the US for some period of time, will have to pay taxes on their income (worldwide). So, it is very important to know that no matter whom you are and where your account is, you will be obliged to pay taxes in the USA.
Note as an important thing that if you don’t do this, you will have to pay tax penalties, which are sometimes huge (for example, up to 10 000 dollars for violation). If you get some of the maximum penalties for not paying taxes, tax litigation attorney may be able to give you a hand and make that smaller. He may be able to get civil or criminal tax penalty which is lower. There are also numerous programs made by the IRS which can help you to get lower penalties, but can have some risk if they are not done properly. Some of these programs are: the Streamlined Domestic Offshore Procedure, Offshore Voluntary Disclosure Program, Delinquent International Information Return Submission Procedures, the Delinquent FBAR Submission Procedure, etc.
If you ever need any help, these are the attorneys for offshore tax help!