IRS Offshore Accounts – Criminal Penalties

Criminal Penalties
(6 Year Statute of Limitations)

1. Tax Evasion (Willful Evasion of Tax)
(lRC Sec. 7201) up to five years in prison
Fine: $100,000 (individual)
$500,000 (corporation)

2. Obstruct (Impede Tax Collection)
(lRC Sec. 7212) up to three years in prison
Fine: $5,000

3. Conspiracy to Impede Tax Collection
(18 USC 371) separate charges of impeding – up to five years in prison

4. Failure to File Tax Return
(lRC Sec.7203) up to one year in prison
Fine: $25,000(individual)
$100,000 (corporation)

5. File False Tax Return
(lRC Sec. 7206(1)) up to three years in prison
Fine: $250,000

6. FBAR Violation
(31 USC Sec. 322(b)), 31 CFR 103.59(c)
Willful Violation: up to ten years in jail
Fine: $500,000

Additional Criminal Penalties:

1. Perjury: (U.S. taxpayer, who fail to disclose foreign accounts under Form 1040/Schedule B, Part lll, question 7 (a))

2. FATCA Filings: (i.e. Failure to disclose foreign financial assets on $50,000/lRS Form 8938).

3. Money Laundering: Disguise of the nature or the origin of funds (18 USC Sec. 1956 and 1957)

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