US Courts Support IRS Efforts Regarding FBAR & OVDP

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Direct Tax Relief (DTR) assisting more taxpayers with their Foreign Bank Account (FBAR) and Offshore Voluntary Disclosure Program (OVDP) issues as the IRS increases its offshore compliance efforts.

Direct Tax Relief - We Solve IRS Tax Problems

Direct Tax Relief - We Solve IRS Tax Problems

It is much better to volunteer the information to the government than to hide and wait until the IRS finds you

On November 12, 2013 the U.S. Department of Justice announced that a New York judge entered an order on Nov. 7, 2013, authorizing the IRS to issue summonses requiring foreign banks to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by having funds in undisclosed accounts at foreign banks. The decision is another indication that the IRS is increasing its efforts to bring taxpayers with offshore accounts into compliance one way or another and that the government’s actions have the backing of the courts.

The IRS is making a concerted effort to enforce the reporting of Foreign Bank and Financial Accounts (FBAR) and to root out those supposed tax evaders and bring them into compliance where they might face serious tax debt along with penalties, interest and even criminal prosecution. Many taxpayers who have participated in the Offshore Voluntary Disclosure Program (OVDP) have prevented criminal prosecution.

One such case noted by the Department of Justice is the case of Alexi Iazlovsky of Potomac, Maryland (Case Number: Case 2:13-cr-00344-GHK). The Justice Department and Internal Revenue Service, Criminal Investigation announced that Iazlovsky, pleaded guilty July 1, 2013 in the U.S. District Court for the Central District of California to filing a false tax return for tax year 2008.

“The IRS takes foreign banking and offshore compliance very seriously,” stated Maurice Rosaler, an enrolled agent with DTR with over 26 years tax resolution experience including almost two decades with the IRS that included assignment in the IRS International/Offshore Compliance Division.

“It is much better,” continued Rosaler, “to volunteer the information to the government than to hide and wait until the IRS finds you out and trust me the IRS has the tools to do so. But this is complicated stuff and if one decides to disclose then they should get the help of a tax professional with experience in this field as we do here at DTR.”

As recently as October of this year the IRS revised their manual giving their agents new guidance and clarification concerning the review of FBAR penalties and appeals (Internal Revenue Manual Part 8, Chapter 11, Section 6).

As penalties for FBAR violations can be quite serious, sometimes actually exceeding the funds held in the foreign bank accounts, it’s again important to get professional assistance with a specialist who keeps up with the changes in IRS policy and procedures.

“The bottom line,” concluded Rosaler, DTR’s senior enrolled agent, “is that the IRS is getting even more aggressive and that what was once considered secret to the government is no longer so. With the court approving summonses on foreign banks and the expectation those banks will comply the days of hidden ‘Swiss bank accounts’ is over. Better to be proactive and have your tax professional contact the IRS on your behalf than to have the IRS knocking at your door. If the IRS has already contacted you then retain expert help as quickly as you can.”

Direct Tax Relief has extensive experience in the foreign tax field and has represented numerous clients since 2007, providing professional tax advice as how to deal with FBAR and offshore compliance issues and how to avoid criminal prosecution, appeal penalties and establish minimal payment plans to the government.

If you have unfiled tax returns or owe the IRS or state over $10,000 in back taxes, call Direct Tax Relief now at (877) 505-4829 for a free tax consultation or visit their website at for more details. Their tax experts will take over all communications with the IRS and handle your case from beginning to end.

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Harry Galstian
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