The ways in which people handle money differ from person to person. For some, using offshore accounts may make sense for their financial situations, particularly if they hope to gain some kind of tax advantage. However, if parties do not report the necessary information regarding their foreign accounts to the IRS or if the IRS simply believes that an issue with the account exists, tax problems could arise.
Texas readers may be interested in a recent report regarding the alleged unreported income of the highest-earning Americans. Apparently, the individuals who make up the top 1% of high earners in the United States allegedly report only about 79% of their income. It was noted that purported evasion attempts are even more significant among the top 0.1% of American earners.
It is suspected that many of these earners use various methods of underreporting in an attempt to avoid paying the necessary taxes on their income. Some methods purportedly include:
- Using offshore bank accounts
- Having pass-through business schemes
- Utilizing other similar tax havens
Allegedly, offshore accounts have helped individuals avoid approximately $15 billion in taxes. This is staggering number, and likely, the IRS will want to crack down on possible evasion by those who use such accounts. In the event that Texas residents find themselves facing issues or accusations from the IRS in relation to their accounts, they may want to ensure that they understand their legal rights and options. Going through an audit and defending against possible charges can be difficult, but various defense strategies could suit a given situation.