OFF SHORE ACCOUNTS
Several high net worth businesses owners or individuals looking for a way to evade taxation use offshore accounts to hide their money and financial assets safely. Although offshore accounts are a legal way to protect your financial assets, they are seen as less safe than the federal insured finances banked in U.S. banks. Additionally, there are several more FBAR issues that require to be dealt with.
There are several conditions when offshore accounts are favorable:
- Offshore limited liability companies and corporations are established for global trading and asset safeguarding and can aid I the management of taxes on foreign income. There exists specific tax flexibility and benefits that are allowed for these offshore accounts. It is best to seek advice from an IRS attorney to establish what lawful advantages these accounts can bring.
- Trusts established offshore are typically part of estate planning processes and can assist to keep current and future creditors at bay. This is a perfect way to protect funds for family descendants and heirs. An offshore trust is beneficial, as it can remain confidential to other parties.
- Private organizations set up outside the US operate in the same way as a trust, and operate like a company. If they are offshore, they can be confined against surplus taxation and the claims of other creditors.
Owing to the sophistication of the FBAR necessities associated with having an offshore bank account, it is best that you consult with a competent tax attorney. A strategic lawyer is led by a previous IRS lawyer, who has worked for the government for over eight years. Currently, he is here to give you advice on your next financial step. Contact Morris now to get answers to your offshore account queries.
1. Offshore account penalties
despite the fact that offshore accounts look like a smart way to secure some of your financial assets, if you use these accounts to illegally hide your funds or income from the U.S. government, you could end up in a compromising situation.
If you have offshore accounts, concealed foreign income or you are indicted of tax evasion, your assets could remain untouched, but still you possibly will still face the likelihood of criminal charges and other fines.
Criminal charges related to tax returns include:
- 5 years of imprisonment and fines of up to $250,000 for Tax Evasion (26 U.S.C. § 7201);
- 3 years of imprisonment and fines up to $250,000 for filing a false return (26 U.S.C. § 7206(1);
- 1 years of imprisonment and fines up to $100,000 for refusal to file tax return
- 10 years of imprisonment and fines up to $500,000 for refusal to file an FBAR filing of a fake FBAR
If you possess an offshore account which requires FBAR, Let one of our experienced IRS tax lawyers help run your assets and make sure that due diligence is completed. Any one of our IRS attorneys can offer you with free one on one consultation to discuss your options and set up a custom plan that will work for you. Contact us now. We can help. (800) 669-4775.
If you want to find out what the IRS has to say visit this link IRS FBAR Financial Account FAQ. Check out also on FBAR Filing Requirements FAQ from their website. Search Google for your local state’s laws. Forbes has a useful business articles in the investment section on filing the FBAR for the first time.