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Bank Hapoalim

The IRS and US Department of Justice (DOJ) have announced that they are actively investigating US taxpayers with undisclosed offshore accounts in Israel.   Recently, IRS and DOJ officials confirmed that they are negotiating with the Israeli bank, Bank Hapoalim to identify US taxpayers with undisclosed accounts at Bank Hapoalim in Israel.

The United States and Israel enjoy a close relationship, and the governments of both countries are working together to uncover tax fraud and other tax violations, thus US taxpayers should assume Israeli banks are sharing information with the IRS.  US taxpayers with undisclosed offshore accounts or other property in Israel should take steps as soon as possible to ensure that their foreign accounts and assets are properly reported to the IRS or face severe financial penalties and criminal prosecution.  Taxpayers who have not disclosed their accounts to the IRS are encouraged to disclose their offshore accounts to the IRS through the offshore voluntary disclosure program.

The Thorn Law Group represents US taxpayers making voluntary disclosures of their offshore accounts as well as taxpayers who did not make a voluntary disclosure but are being investigated by the IRS and DOJ for failure to disclose their accounts.

On January 9, 2012, the IRS announced its 2012 Offshore Voluntary Disclosure Program for taxpayers with undisclosed offshore accounts.

The basic terms of the program are:

  1. A 27.5 percent penalty of the undisclosed offshore accounts based on the highest aggregate account balance over the past eight-year period.
  2. Participants must pay back taxes and interest on any unreported income for up to eight years as well as accuracy related and/or delinquency penalties.
  3. Participants must file all original and amended tax returns and include payments for taxes, interest and accuracy related penalties.

Taxpayers who successfully complete the Offshore Voluntary Disclosure Program will likely avoid criminal prosecution or jail time.  They will also not be liable for taxes or penalties prior to the years disclosed in the program.

The IRS has not stated how long the 2012 Offshore Voluntary Disclosure Program will be available, and could close it at any time.

To take advantage of this opportunity and to potentially avoid substantial civil and criminal penalties, contact Kevin E. Thorn, Managing partner at Thorn Law Group today at ket@thorntaxlaw.com or call (202) 270-7273.

This is an area of ongoing activity by the IRS and the Department of Justice. Check out our Blog and the News & Events page for the latest developments regarding undisclosed offshore accounts.

 


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