IRS and Offshore Tax Evasion: June 2016 Update (2)

Both the IRS and the DOJ are actively hunting down tax cheats:

1. UBS Hands Singapore Client to US

2. Swiss Banker Pleads Guilty to Tax Evasion as IRS Hunts Offshore Accounts

3. F. Lee Bailey, Lawyer for O.J. Simpson, Files for Bankruptcy

For all US taxpayers with foreign bank & financial accounts over $10k, the FBAR form (Fincen 114) is due by 6/30. Failure to file the FBAR form to disclose the offshore bank accounts has both civil and criminal penalties. In addition, under Form 1040/Schedule Part 3 (Line 7) if the offshore bank account(s) are not disclosed the tax return is incomplete, the IRS may suspend the civil tax audit statute of limitations; the IRS may also freeze the 6 year statute of limitations to prosecute criminal tax evasion until such time as the Form 1040 tax return is correctly prepared and filed.

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