Taxpayers that own (or control) offshore bank accounts and other foreign financial assets have a duty to report these assets to the federal government annually. While there are minimum thresholds for taxpayers’ reporting obligations, these thresholds are fairly low—so most high-income and high-net-worth taxpayers will need to comply. Typically, this […]
Category: Offshore Accounts/International Tax Disputes
While the FTX trial has recently been making national headlines, the Internal Revenue Service (IRS), Financial Crimes Enforcement Network (FinCEN), and other federal agencies have been targeting cryptocurrency-related crimes for years. Along with FTX, other exchanges and mixers like Tornado Cash have faced intensive scrutiny as well, and federal authorities […]
The Internal Revenue Service’s (IRS) streamlined filing compliance procedures provide a way for U.S. taxpayers to mitigate the consequences of failing to disclose their foreign financial assets. Taxpayers who qualify to submit a streamlined filing are not subject to failure-to-file, failure-to-pay or accuracy-related penalties and instead pay a five-percent “miscellaneous […]
U.S. taxpayers who own offshore accounts and certain other foreign financial assets have an obligation to disclose these assets to the Internal Revenue Service (IRS)—provided that their value exceeds the IRS’ relatively modest reporting thresholds. Depending on the nature of a taxpayer’s foreign financial assets, this may entail two separate […]
Tax laws are notoriously complicated and confusing. Average taxpayers rarely have a solid grasp on what they need to know, and in some cases, it takes the U.S. Supreme Court to interpret these laws. For instance, the Bank Secrecy Act has been in place since 1970, but interpretive problems still […]
If you are wishing to avoid criminal prosecution and be compliant with The Foreign Account Tax Compliance Act (FATCA) you will need to accurately report on any foreign financial accounts and foreign assets you or your company or business entity holds. In November of 2018, the IRS issued new guidance […]
Anyone with significant financial holdings knows that they are not illegal. So, why the bad rap? It is because these very legal, above-board accounts have been misused or used to hide money. Offshore banks have been connected to money laundering, tax evasion, and straw men and shell companies. Famous and […]
Offshore accounts are not illegal per se, and there are numerous benefits to keeping assets in banks of other countries. However, offshore accounts present numerous tax complications, not the least of which is a legal landscape that seems to be constantly shifting, making it nearly impossible to stay in compliance […]
Tax obligations are complex enough for people conducting business domestically. When a business reaches an overseas market, the complications only increase. If you are doing business outside of the U.S., you can spare yourself significant trouble by avoiding a few common mistakes. Not meeting reporting requirements Your tax reporting requirements expand […]
Disclosing offshore accounts to the IRS is increasingly necessary for individuals and companies. As the IRS becomes more aggressive in pursuing owed taxes, disclosures of foreign accounts and ensuring proper payment are a necessity. However, many choose to address this issue that doesn’t make waves. These “quiet disclosures” work by […]