Whether you missed filling for one period or you thought it wasn’t serious, the IRS is offering what could be the last chance for people to disclose foreign accounts and avoid possible criminal prosecution
Los Angeles, CA (PRWEB) June 21, 2011
On February 8, 2011, the Internal Revenue Service (“IRS”) announced a new offshore amnesty program to grant people with undisclosed income from offshore accounts an opportunity to file their taxes and avoid possible criminal prosecution. Called the 2011 Offshore Voluntary Disclosure Initiative (“OVDI”), the new program is available only until August 31, 2011; however, the Law Offices of Jeffrey B. Kahn advises tax filers that in order to receive the Aug. 31 extension for the 2010 Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (“FBAR”), they must enter the IRS offshore amnesty program before June 30th.
The Law Offices of Jeffrey B. Kahn, P.C. is a tax, probate and business law firm headed by Jeffrey B. Kahn, Esq., a member of the California and Florida Bars and Florida Bar Board Certified in Tax law.
“Not everyone who avoids filing their taxes is hiding assets and income offshore,” said the principal Jeffrey B. Kahn. “Whether you missed filling for one period or you thought it wasn’t serious, the IRS is offering what could be the last chance for people to disclose foreign accounts and avoid possible criminal prosecution.”
According to the law firm, the risk of filing an FBAR for the first time on or before the June 30th deadline without first applying for the 2011 OVDI is that the IRS will flag the foreign account holder for investigation, thus preventing him or her from entering the Federal tax amnesty program.
Federal law requires U.S. taxpayers to pay federal income taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A willful failure to report a foreign account can result in a penalty of the greater of $100,000.00 or 50% of the amount in the account at the time of the violation. In addition, other criminal penalties including fines and incarceration can be incurred.
By entering into the foreign account amnesty program, you can avoid criminal prosecution and get a break from the maximum civil penalties that the law allows.
The Law Offices of Jeffrey B. Kahn encourages all foreign account holders who have not met their filing and disclosure requirements to contact our office immediately to set up a free consultation. The law firm will discuss the benefits and requirements of entering into this IRS amnesty program. For more information about the Law Offices of Jeffrey B. Kahn, or to schedule a prompt evaluation of your case, please visit http://www.kahntaxlaw.com/.
The Law Offices of Jeffrey B. Kahn, P.C. is a tax, probate and business law firm headed by Jeffrey B. Kahn, Esq., a member of the California and Florida Bars and Florida Bar Board Certified in Tax law. The firm has eight offices throughout Northern and Southern California, including locations in Walnut Creek, San Francisco, San Jose, Fairfield, San Rafael, Los Angeles, San Diego and Newport Beach. To discuss your probate, estate planning, business or tax matter, please call 866-494-6829.