Comprehensive Counsel for International Tax Issues
Although the IRS’ Offshore Voluntary Disclosure Program ended in 2018, there are still options available to taxpayers who qualify for Streamlined Disclosures and the Domestic Voluntary Disclosure Program. The Internal Revenue Service and Department of Justice continue to aggressively pursue taxpayers with undeclared offshore assets and accounts. If you have an offshore account, you may have a limited amount of time to disclose the account before you face serious consequences, including financial penalties and criminal charges.
At the Law Office of Williams & Associates, P.C., our practice focuses on tax law issues such as tax compliance concerning foreign assets. From our office in Sacramento, our attorneys represent individuals and businesses from California, throughout the United States and in numerous foreign countries. We have successfully assisted hundreds of taxpayers in the various IRS Offshore Voluntary Disclosure Programs concerning offshore assets.
How FATCA Impacts Offshore Assets and Accounts
The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 to combat tax evasion by U.S. residents with assets in offshore accounts or in foreign tax jurisdictions. Taxpayers holding investments outside the United States valued in excess of $10,000 are required to file an annual Report of Foreign Bank and Financial Accounts (FinCEN 114) with the IRS, and taxpayers must also complete other forms, such as IRS Form 8938 for certain assets that are valued in excess of $50,000.
FATCA also requires foreign financial institutions to report information directly to the IRS regarding offshore accounts owned by U.S. taxpayers, or face harsh penalties and withholding requirements that adversely affect account balances. Increasingly, the United States is working with other countries through Model Intergovernmental Agreements to exchange account holder information. Our lawyers also work with foreign financial institutions regarding FATCA compliance.
In June 2014, the IRS announced new streamlined procedures for qualified taxpayers whose noncompliance was not willful. Taxpayers who qualify may be subject to only a 5 percent offshore penalty or no offshore penalty. Our attorneys are experienced with both the Streamlined Foreign Offshore Procedures, as well as the Domestic Voluntary Disclosure Program.