Disclosing your Offshore Assets to the IRS
If you have undisclosed foreign accounts, or have an interest in undisclosed foreign entities, it is in your best interest to be in compliance with United States tax laws. In doing so, it will allow you to avoid substantial civil penalties and generally eliminate the risk of criminal prosecution. Taxpayers who do not submit a voluntary disclosure run the risk of detection by the IRS, which can lead to the imposition of substantial penalties. These penalties include the fraud penalty, foreign information return penalties, and an increased risk of criminal proceedings.
Our Thorough Offshore Disclosure Process
It is extremely important that any interactions with the IRS are done in a competent, thorough manner. Freeman Tax Law has created the following process map, which we use as a guide in helping our clients successfully navigate the complicated offshore disclosure procedure.
Step 1 – Intake
The first step is meeting with the client, and gaining a an understanding of their tax situation. Form 2848 will be filed with the IRS, and an individualized work plan and case strategy will be developed.
Step 2 – Information Gathering
Next, extensive and complete information gathering is completed. This information will be obtained from the client, and any applicable banks or other financial institutions.
Step 3 – Work Plan
The personalized work plan is finalized, with on-boarding of client and continued case management.
Step 4 – Prepare FBAR’s
Foreign Bank Account Reports are prepared, and reviewed with client.
Step 5 – Prepare Tax Returns
All applicable federal, state and local tax returns are prepared, and reviewed with client.
Step 6 – Legal
Documents are drafted for voluntary disclosure, and guidance is provided concerning relevant legal issues. If required, representation before the IRS is provided.
Step 7 – Finalize, Submit, Represent
Review and finalize documents, assemble and submit package and file with the IRS. Represent the taxpayer as necessary before the IRS.