With the U.S. government eagerly seeking the names of all local residents with offshore accounts at the United Bank of Switzerland, they have made a move that might save those who have avoided taxes from any jail time or persecution.
The United States estimates that as many as 50,000 people have offshore accounts with UBS and can take advantage of the new offshore banking amnesty program.
Knowingly not reporting income on your Federal income tax return is a crime and many of the 50,000 with accounts at UBS not paying U.S. taxes could not come forth prior to the government’s new initiative for offshore banking amnesty.
On March 23, the Internal Revenue Service came up with a six-month program giving offshore banking amnesty to U.S. taxpayers with unreported income with UBS or other offshore accounts.
This IRS bank deposit amnesty means any U.S. citizen with an offshore account will get amnesty or freedom from jail or investigations if they come clean, now.
The price for this piece of mind is to pay the income tax, the interest on the income tax and two specific penalties on unreported income and foreign bank accounts for the years 2003 through 2008.
Act Fast, the Clock is Ticking on the Voluntary Disclosure
The offshore banking amnesty program originally terminated on September 23, 2009-- BUT has just recently been extended to October 15, 2009.
Before this offshore banking amnesty, the IRS had another voluntary disclosure policy but one with no guarantees of amnesty and more penalties than the current program.
The current IRS bank deposit amnesty from the IRS DOES guarantee amnesty and has limits on the fines you are liable for.
The IRS bank deposit amnesty or offshore banking amnesty does have requirements.
With the new offshore banking amnesty program, the taxpayer’s voluntary disclosure is sent to the local Criminal Investigation Office that will determine if the disclosure is voluntary, and has been truthful and timely.
The voluntary disclosure under the new offshore banking amnesty requires:
- The formally undisclosed income was not made illegally
- The taxpayer must cooperate to determine what taxes are owed
- The taxpayer must make arrangements to pay past taxes in full and penalties
- The IRS cannot have initiated any investigation on your income
- The IRS cannot have received information on your noncompliance
- The IRS cannot have gotten information that has to do with your liability from criminal action like a search warrant or grand jury subpoena.
If you have offshore accounts and feel you qualify for the new offshore banking amnesty, contact a tax lawyer now. There are only months left and the clock is ticking.
Contact Richard Lehman today for a confidential consultation -- 561-368-1113
Richard S. Lehman, P.A.
2600 N. Military Trail, Suite 270
Boca Raton, Florida 33431
Telephone: (561) 368-1113
Facsimile: (561) 998-9557
