Since 2012, 30,000 Americans avoided stiff tax penalties by declaring they had innocent reasons for failing to disclose offshore holdings. But under the program they received no guarantees that they wouldn’t be prosecuted in the future. And now the Justice Department and the IRS are going through thousands of secret records obtained from 80 Swiss banks to determine whether the taxpayers were truthful.
The U.S. Government received extensive data from Swiss Banks under settlements in which they disclosed how they help Americans evade taxes. The banks handed over account information, as permitted by Swiss secrecy law, and recordings of phone conversations with US clients. In exchange for this cooperation, the banks avoided prosecution from the United States.
Taxpayers being scrutinized are those who came forward under the government’s streamlined program. Those living in the United States paid penalties of five percent of their undisclosed offshore assets.
Dangerous Time for Those with Offshore Accounts
There is an avalanche of information being sent to IRS from offshore entities. This includes client names, account numbers, and account balances. If you have offshore accounts that have not been reported, it is essential that you determine a course of action to get in compliance with all federal reporting requirements.