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FINANCE
TAX SCAMSIRS DISCUSSES OFFSHORE
by Michael Wiener, E.A. “Furthermore, the IRS stated
that the thousands of offshore
I n a recent news release the Internal Revenue Service has related civil audits that have
stated that its Offshore Voluntary Disclosure Program been conducted have produced
(OVDP) will remain open for an indefinite period or until tens of millions of dollars. And
it announces otherwise. Furthermore it cautioned that avoiding
U.S. taxes by hiding money or assets in unreported offshore its pursuit of criminal charges
accounts remains on its list of tax scams and cautioned that illegal have lead to billions of dollars in
scams can lead to significant penalties, interest and possible
criminal prosecution. ”criminal fines and restitutions.
On March 26, 2009, the IRS account, taxpayers must comply with certain filing requirements.
announced its first OVDP program, Failure to comply could result in penalties, interest, and possible
a form of a tax amnesty program. It criminal prosecution.
permitted taxpayers with unreported
foreign accounts to avoid criminal Tens of thousands of individuals have come forward voluntarily
charges and pay reduced civil penalties to disclose their foreign financial accounts since 2009, taking
by making a voluntary disclosure to the advantage of the special opportunities to comply with the U.S.
IRS. This original OVDP ran through tax system and resolve their tax obligations. The provisions of the
October 15, 2009.Thereafter the program Foreign Account Tax Compliance Act (FACTA) that are being
has been extended in early 2011, closing phased in over the next few years make hiding income offshore
in September 2011, reopening in 2012. increasingly more difficult.
Finally the IRS announced changes to
the 2012 that took effect on July 1, 2014. If you should have a topic that you would like me to
Since the opening of the OVDP, there have been more than discuss or if you should have a question, please feel free to
50,000 disclosures, resulting in the collection of more than $7
billion. Furthermore, the IRS stated that the thousands of offshore call 239.403.4410 or e-mail me at
related civil audits that have been conducted have produced tens of mike@cctaxandaccounting.com.
millions of dollars. And its pursuit of criminal charges have lead to
billions of dollars in criminal fines and restitutions. An enrolled agent, licensed by the US Department
Unlike previous programs, the 2012 OVDP does NOT impose of the Treasury to represent taxpayers before the IRS
a deadline by which taxpayers must make a voluntary disclosure for audits, collections and appeals. To attain the enrolled
to be eligible for avoiding criminal prosecution and pay reduced agent designation, candidates must demonstrate expertise
penalties- that is its open ended. But according to IR 2015-09 the in taxation, fulfill continuing education credits and adhere
IRS declares that the OVDP will remain open for an “indefinite
period until otherwise announced.” to a stringent code of ethics.
Over the years numerous individuals have been identified by
hiding income in offshore banks, brokerage accounts, or nominee
entities and then using debit cards, credit cards, or wire transfers
to access funds. Others have used foreign trusts , employee-leasing
schemes, private annuities, or insurance plans for the same purpose.
Even if there are legitimate reasons for maintaining an offshore
74 Life in Naples | May • June • July 2015
