Top Things to Ask a New Jersey Offshore Tax AttorneyOffshore Account Update
Posted on November 4, 2019 | Share
If you are facing U.S tax issues on your offshore accounts, then you have a lot on your plate. You could face significant penalties, fines, and possibly even criminal prosecution Whether you need to make tax disclosures or want to come into reporting compliance, you will need competent guidance. A New Jersey offshore account attorney can give you that guidance.
Below are the top questions you should be asking your New Jersey offshore tax attorney.
What Tax Disclosures Should I Make on My Offshore Accounts?
Offshore account holders must definitely be aware of IRS reporting requirements for those accounts. One of the main requirements is filing the Foreign Bank Account Report (FBAR). On the FBAR, the U.S. taxpayer must disclose all offshore bank accounts that meet a threshold balance amount.
For higher threshold amounts, the taxpayer may need to file Form 8938, the Statement of Specified Foreign Financial Assets. This form requires the taxpayer to state the maximum value of certain types of foreign assets during the tax year. These assets include funds at foreign financial institutions, i.e., offshore accounts, as well as other types of foreign assets (stocks, partnership interests, insurance, etc.) Form 8938 is filed with the Financial Crimes Enforcement Network (FinCEN), a U.S. Treasury Department bureau, instead of the IRS.
These are only some of the reporting requirements for offshore accounts. If you are facing tax issues on offshore accounts, you will need to speak with a New Jersey offshore tax attorney to fully advise you on your reporting requirements.
How Can a New Jersey Offshore Tax Attorney Help with Reporting Compliance?
For taxpayers with previously unreported offshore accounts, the IRS provides options.
One of the primary options is voluntary disclosures under the 2018 Updated Voluntary Disclosure Program, which may allow the taxpayer to receive protection from criminal prosecution. This program replaced the Offshore Voluntary Disclosure Program (OVDP), the former program for voluntary disclosures of offshore accounts.
If your tax violations were non-willful, you may be able to utilize Streamlined Filing. You may even be able to simply file delinquent submissions, such as delinquent FBARs. However, you should note that the line between willful and non-willful violations is not always clear. This is just one reason that a New Jersey offshore account attorney is needed to advise you.
Should I Wait to Report My Offshore Accounts?
While you might wish to wait to report any undisclosed offshore accounts, there are huge risks in doing so. The financial penalties and criminal exposure will only add up over time. You may be cut off from making voluntary disclosures if you come under IRS examination or investigation. And there is a substantial chance of being caught, since foreign banks are compelled to require your financial information to the IRS under the Foreign Accounts Tax Compliance Act (FATCA).
A New Jersey Offshore Account Attorney Can Help with Your Tax Issues
If you are facing tax issues over your offshore accounts, consult with a New Jersey offshore account attorney at the Thorn Law Group. For consultation scheduling, contact Kevin E. Thorn, Managing Partner, at 201-842-7696.