Posts Tagged ‘tax havens’
Monday, September 21st, 2009
WASHINGTON ─ The Internal Revenue Service today announced a one-time extension of the deadline for special voluntary disclosures by taxpayers with unreported income from hidden offshore accounts. These taxpayers now have until Oct. 15, 2009. See http://tinyurl.com/mv9oub and NY Times http://tinyurl.com/nleozr
Under special provisions issued in March, taxpayers with these hidden accounts originally had until Sept. 23, 2009 to come forward. Those taxpayers who do not voluntarily disclose their hidden accounts by the new deadline face much harsher civil penalties, where applicable, and possible criminal prosecution.
IRS officials decided to extend this deadline after receiving repeated requests from tax practitioners and attorneys around the country following an influx of taxpayer requests. By extending the deadline for a short period of time, the IRS is providing relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it. The extension will allow tax preparers and attorneys the necessary time to interview and advise their backlog of taxpayers with these hidden accounts, and prepare the necessary paperwork to qualify for the special penalty provisions.
The IRS also announced that there will be no further extensions.
No legal opinion here.
Bill Lowrance
Tags: foreign bank accounts, Offshore Accounts, secret bank accounts, Swiss Accounts, tax evasion, tax havens
Posted in IRS, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, income tax | No Comments »
Thursday, May 7th, 2009
Here are a couple of the FAQs the IRS published yesterday on its web site regarding offshore accounts:
1. Why did the IRS issue internal guidance regarding offshore activities now?
The IRS has had a voluntary disclosure practice in its Criminal Manual for many years. Once IRS Criminal Investigation has determined preliminary acceptance into the voluntary disclosure program, the case is referred to the civil side of IRS for examination and resolution of taxes and penalties. Recent IRS enforcement efforts in the offshore area have led to an increased number of voluntary disclosures. Additional taxpayers are considering making voluntary disclosures but are reportedly reluctant to come forward because of uncertainty about the amount of their liability for potentially onerous civil penalties. In order to resolve these cases in an organized, coordinated manner and to make exposure to civil penalties more predictable, the IRS has decided to centralize the civil processing of offshore voluntary disclosures and to offer a uniform penalty structure for taxpayers who voluntarily come forward. These steps were taken to ensure thattaxpayers are treated consistently and predictably.
3. Why should I make a voluntary disclosure?
Taxpayers with undisclosed foreign accounts or entities should make a voluntary disclosure because it enables them to become compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution. Making a voluntary disclosure also provides the opportunity to calculate, with a reasonable degree of certainty, the total cost of resolving all offshore tax issues. Taxpayers who do not submit a voluntary disclosure run the risk of detection by the IRS and the imposition of substantial penalties, including the fraud penalty and foreign information return penalties, and an increased risk of criminal prosecution.
Remember the IRS deadline for this voluntary disclosure deal is September 23, 2009.
Tags: cirme, foreign bank accounts, income tax, IRS, Offshore, Offshore Accounts, secret bank accounts, Swiss Accounts, Tax Attorney, Tax Crime, tax havens, Tax Problems
Posted in Attorney, Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems, income tax, tax news | No Comments »
Thursday, May 7th, 2009
Yesterday, May 6, 2009, the IRS posted on its website FAQs on more details of the settlement offer for unreported offshore income. The FAQs discuss the recently announced program for voluntary disclosure to the IRS of offshore bank accounts. The official Voluntary Disclosure can be found Click Here.
Those meeting the terms of the disclosure program will have to pay back-taxes and interest for six years, and pay either an accuracy or delinquency penalty on all six years. They will also pay a penalty of 20% of the amount in the foreign bank accounts in the year with the highest aggregate account or asset value, but will avoid criminal prosecution. The FAQs provide examples of what it would cost to take the settlement offer, spell out the potential civil and criminal penalties for those that don’t take the offer, and address the consequences of attempted “quiet disclosure” (i.e., filing amended returns). See FAQs Click Here.
If you have an unreported offshore bank account, it is important to consider the Voluntary Disclosure program. Coming forward and disclosing your information may save you a lot of money in penalties and, more importantly, may avoid criminal prosecution. In my practice, we offer legal expertise in this area along with accounting expertise. A former IRS International Revenue Agent works exclusively for me on my client’s cases. We analyze your entire situation including foreign transactions, amended returns, reporting requirements and meeting and negotiating with the IRS.
As always, my practice is client focused.
Bill Lowrance
Lowrance Law LLC
703 506 1600
No Legal Opinion Here
Tags: cirme, foreign bank accounts, Offshore, Offshore Accounts, secret bank accounts, Swiss Accounts, Switzerland, Tax Authorities, tax crimes, tax evasion, tax havens
Posted in Attorney, Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems | No Comments »
Friday, March 13th, 2009
Switzerland, Austria and Luxembourg agreed to share secret banking information in cases of tax evasion on Friday. Basically, these havens are agreeing to the OECD standards on financial information sharing. Of course, this is not an open season on the bank and financial information. These countries will consider various requests from other countries for banking information on a case by case basis.
The IRS has information sharing agreements with many tax havens, or as they like to call themselves–offshore financial centers. None of the countries, however, automatically turn over bank or financial upon a request from the IRS. There is a lot more to the process and procedure. Using various laws and procedures, the person or business subject of the request can delay or stop the requests. When I was a trial attorney for the Office of Chief Counsel, IRS, International Division I was involved in many local countries court proceeding challenging the IRS request. Some challenges are successful.
Anyway, read the NY Times story on the recent Swiss agreement:
The Swiss government bowed to pressure on Friday and agreed to conform to international standards on exchanging information in suspected cases of tax evasion, but it maintained that its principle of banking secrecy was in tact.
Two other countries, Austria and Luxembourg, announced steps to fend off a global crackdown on tax evasion by offering concessions before a meeting of leaders from the Group of 20 nations in London at the start of next month.
Read the whole story Click Here NYT
In another story, the Cayman Islands “Leader of Government Business,” Kirk Tibbets, announced that he and others from the Caymans met with US Congress to brief new members about the Cayman’s laws, positions and cooperation in sharing information under various agreements:
Part of the press release said: “[Purpose] to brief new members of key House and Senate committees about the quality of Cayman’s regulatory and international cooperation regimes, with specific reference to our longstanding and effective arrangements with the United States, and to glean any available intelligence on the US position in relation to the April G20 Summit.
My colleagues and I covered, between us, 30 meetings over two days. The people we met were receptive to what we had to say and appeared to have no particular ‘anti-Cayman’ - or even ‘anti- offshore’ - agenda. That is not to say that there are not those members of Congress who do, but they do not appear to reflect the majority sentiment. What came through most forcefully was that the policy environment in Washington is very fluid at the moment, and most of people’s energies and attentions are, understandably, taken up with the US economy, budget and financial system.”
Read the whole press release: Click Here
Bill Lowrance
No legal opinion here
Tags: foreign bank accounts, Office of Chief Counsel IRS, Offshore, Offshore Accounts, secret bank accounts, Swiss Accounts, Switzerland, tax havens, tax information exchange agreements, tax treaties
Posted in Attorney, IRS, Offshore Accounts, Tax Crime, Tax Problems | No Comments »
Sunday, January 11th, 2009
According to the NYT, the Swiss Bank UBS, the world’s largest wealth manager, is going to return about $18 billion dollars to more than 19,000 account holders most of whom are US citizens. The US citizens holding the accounts, according to the IRS and Justice Department, have evaded at least $300 million a year in taxes, and that does not count penalties and interest.
In its article, “What to Do if UBS is Outing Your Secret Account,” NYT lists possible strategies to take in dealing with the IRS – see also NYT artcle about UBS’ plan to disclose accounts. If you have held such an account, your best choice to try and avoid criminal prosecution is to voluntarily disclosure your situation to the IRS. You may not be prosecuted, the choice is up to the Justice Department and the IRS, but you will have to report all your accounts and income and pay taxes, penalties and interest. Of course, paying money is better than sitting in a prison cell.
When I worked as an attorney in the Office of Chief Counsel, IRS, I specialized in criminal and civil tax matters involving offshore tax havens and hidden money. We had to decide how to investigate cases, get the money back and determine civil or criminal steps to take. We often collected millions of dollars in unpaid taxes, penalties and interest.
If you have the offshore account that has not been reported, do not wait for the IRS to knock on your door.
Bill Lowrance
Tags: cirme, Department of Justice, foreign bank accounts, fraud, income tax, Office of Chief Counsel IRS, Offshore Accounts, secret bank accounts, Swiss Accounts, tax crimes, tax havens
Posted in Attorney, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Problems, Uncategorized, income tax | No Comments »
Monday, December 15th, 2008
The IRS announced that it is hiring senior level Economists and Internal Revenue Agents (International Examiner, Financial Products & Transactions Examiner, and Team Member/Domestic Agents for entry on duty in March and April 2009. This is another indicator that the IRS will be stepping up enforcement efforts in 2009 and subsequent years. Special emphasis will be on international transaction including offshore bank accounts, offshore trusts, offshore income and other cross border transactions.
IRS Announcement: See Whole Article Here
“Do you have a specialty in tax administration? Do you have family, friends, or neighbors with this expertise who might be interested in joining the Internal Revenue Service? If so, look no further—the Large and Mid-Size Business (LMSB) Division of the Internal Revenue Service has challenging positions available now!
LMSB is seeking to fill 100 technical GS-11, GS-12, and GS-13 positions nationwide, including Economists and Internal Revenue Agents (International Examiner, Financial Products & Transactions Examiner, and Team Member/Domestic Agent) with entry on-duty dates planned for March and April 2009. To view more details and apply for these vacancies, visit the Office of Personnel Management Web site for IRS jobs at: http://jobsearch.usajobs.opm.gov/a9trirs.asp . Select “Economist” or “Internal Revenue Agent” under Occupational Series and click on Search for Jobs.”
Bill Lowrance
Lowrance Law LLC
McLean, VA
Tags: international tax, IRS, Offshore, revenue agents, Tax, tax enforcement, tax havens
Posted in IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems, Tax Research | No Comments »
Thursday, December 4th, 2008
Thanks to Tax Prof Blog for A NYT Story on the expanded US Justice Department and IRS investigation of foreign banks, Credit-Suisse and HSBC and their private banking services.
The new investigation relates to the present investigation into UBS Bank in Switzerland See See Prior Post. The IRS and US Department of Justice (DOJ) are really looking for US citizens who are stashing money and assets in foreign accounts without reporting such accounts in filings with the IRS. This investigation will come to fruition in the next several months to a year or more. In this type of investigation, the government moves forward slowly and methodically. The IRS and DOJ have to conduct the investigaitons using various international information gathering treaties and agreements.
Don’t worry, however, the wheels of justice grind slowly. The IRS and DOJ will eventually get some information about US citizens putting money in foreign bank accounts. The information will be used to identify the people, find their tax filings, updated contact information and reported financial holdings. The resulting case will go through either the civil or criminal process. If you have a foreign account you have reported to the IRS, carefully plan your future.
Bill Lowrance
Your Virginia Tax Attorney
Lowrance Law LLC
Tags: criminal tax, Department of Justice, foreign bank accounts, investigations, IRS, tax havens
Posted in Attorney, Controversy, IRS, Offshore Accounts, Tax Crime, Tax Litigation, Tax Problems, Uncategorized | No Comments »
Thursday, October 23rd, 2008
An estimated $5 to $7 trillion dollars are held in offshore tax havens according to Secretary General Angel Gurría of the Organization Economic Cooperation and Development (OECD) headquartered in Paris Click Here OECD. Why is this important? The IRS is gearing up to increase enforcement against US taxpayers hiding money in offshore tax havens. The OECD is an international organization, based in Paris, with over 30 countries making up its membership. The US is a member of the OECD. The OECD has called for offshore tax havens to enter into agreements with countries to provide business, banking and financial information for tax purposes.
For many years the US and OECD member countries have targeted offshore tax havens to provide more information for tax purposes. Many countries entered into Tax Information Exchange Agreements (TIEAs)with the US and other OECD member countries. The US has TIEAs with many of the offshore tax haven countries. The OECD recently determined that the exchange of information programs for tax purposes are not fully successful Click OECD.
This brings our own IRS into the scene. The IRS has studied our international tax gap, meaning some US citizens may not be reporting offshore income that is taxable. IRS Study In fact, the IRS is planning more international tax enforcement. IRS International
Recently, the IRS has gotten names of US citizens having secret bank accounts in Switzerland. You can be sure that the IRS will be contacting these account owners to question them about the money in those accounts and whether any tax is due. See NY Times Article
When you or your client gets that visit from the IRS regarding the secret bank account in Switzerland, make sure you are prepared to smartly respond to the IRS. If you need more information, contact me.
Bill Lowrance
Tags: IRS, OECD, Offshore, tax crimes, tax evasion, tax havens
Posted in Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems | No Comments »
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