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If you live in New Jersey and you own assets held in foreign countries, you may have compliance obligations under the Bank Secrecy Act. You may also have obligations under the Foreign Account Tax Compliance Act (FATCA). These are federal laws that impose reporting requirements for U.S. taxpayers who own offshore accounts and other offshore assets; and, while they overlap in coverage to a certain extent, they each impose unique compliance obligations, and many taxpayers must comply with both laws in order to avoid IRS penalties and other consequences. Here, New Jersey international tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains the key differences between Bank Secrecy Act and FATCA compliance for U.S. taxpayers.

When you fall behind on your federal tax obligations, voluntarily coming into compliance can save you from substantial penalties and the risk of criminal prosecution for federal tax evasion or tax fraud (or both). However, while the Internal Revenue Service (IRS) offers various “voluntary compliance” options for delinquent taxpayers, these options both (i) offer different benefits, and (ii) are available under different circumstances. As a result, when seeking to come into compliance, you need to make informed decisions, and it is important to rely on the advice of an experienced New Jersey IRS lawyer.

The Internal Revenue Service’s (IRS) Voluntary Disclosure Practice and its Streamlined Filing Compliance Procedures provide ways for individual and corporate taxpayers to mitigate their liability for failing to timely disclose offshore accounts as required by law. However, while the IRS’ Voluntary Disclosure Practice and Streamlined Filing Compliance Procedures offer significant benefits when utilized effectively, there are certain risks associated with voluntary disclosure as well. As a result, U.S. taxpayers must be extremely careful to avoid mistakes that could potentially lead to unnecessary penalties, and they must rely on the advice of counsel when disclosing their offshore accounts to the IRS.

On March 5, 2020, the Internal Revenue Service (IRS) announced the formation of a new Fraud Enforcement Office within its Small Business/Self-Employed Division. While the COVID-19 crisis has put many things on hold, the Fraud Enforcement Office’s director, Damon Rowe, recently told Law 360 that the office is on pace to open as scheduled:

On July 26, 2019, the Internal Revenue Service (IRS) announced that it was sending “educational letters” to U.S. taxpayers who were potentially behind on their federal taxes as a result of underreporting or underpaying their cryptocurrency-related liability. On August 14, 2020, the IRS did it again.