WASHINGTON — The Internal Revenue Service today said avoiding taxes by
hiding money or assets in unreported offshore accounts remains on its annual
list of tax scams known as the “Dirty Dozen” for the 2015 filing season.
"Our continued enforcement actions should discourage anyone from
trying to illegally hide money and income offshore," said IRS Commissioner
John Koskinen. "We have voluntary options to help taxpayers get their
taxes and filing obligations in order."
Since the first Offshore Voluntary Disclosure Program (OVDP) opened in
2009, there have been more than 54,000 disclosures and we have collected more
than $8 billion from this initiative alone. The IRS conducted thousands
of offshore-related civil audits that have produced tens of millions of
dollars. The IRS has also pursued criminal charges leading to billions of
dollars in criminal fines and restitutions.
The IRS remains committed to our priority efforts to stop offshore tax
evasion wherever it occurs. Even though the IRS has faced several years
of budget reductions, the IRS continues to pursue cases in all parts of the
world, regardless of whether the person hiding money overseas chooses a bank
with no offices on U.S. soil.
Through the years, offshore accounts have been used to lure taxpayers into
scams and schemes.
Compiled annually, the “Dirty Dozen” lists a variety of common scams that
taxpayers may encounter anytime, but many of these schemes peak during filing
season as people prepare their returns or hire people to help with their taxes.
Illegal scams can lead to significant penalties and interest and possible
criminal prosecution. IRS Criminal Investigation works closely with the
Department of Justice (DOJ) to shut down scams and prosecute the criminals
behind them.
Hiding Income Offshore
Over the years, numerous individuals have been identified as evading U.S.
taxes by hiding income in offshore banks, brokerage accounts or nominee
entities and then using debit cards, credit cards or wire transfers to access
the funds. Others have employed foreign trusts, employee-leasing schemes,
private annuities or insurance plans for the same purpose.
The IRS uses information gained from its investigations to pursue taxpayers
with undeclared accounts, as well as the banks and bankers suspected of helping
clients hide their assets overseas. The IRS works closely with the Department
of Justice (DOJ) to prosecute tax evasion cases.
While there are legitimate reasons for maintaining financial accounts
abroad, there are reporting requirements that need to be fulfilled. U.S.
taxpayers who maintain such accounts and who do not comply with reporting
requirements are breaking the law and risk significant penalties and fines, as
well as the possibility of criminal prosecution.
Since 2009, tens of thousands of individuals have come forward voluntarily
to disclose their foreign financial accounts, taking advantage of special
opportunities to comply with the U.S. tax system and resolve their tax
obligations. And, with new foreign account reporting requirements being phased
in over the next few years, hiding income offshore is increasingly more
difficult.
At the beginning of 2012, the IRS reopened the Offshore Voluntary Disclosure
Program (OVDP) following continued
strong interest from taxpayers and tax practitioners after the closure of the
2011 and 2009 programs. This program will be open for an indefinite period
until otherwise announced.
Third-Party Reporting
Under the Foreign
Account Tax Compliance Act (FATCA) and the network of intergovernmental
agreements (IGAs) between the U.S.
and partner jurisdictions, automatic
third-party account reporting began in 2015, making it less likely that offshore financial
accounts will go unnoticed by the IRS.
In addition to FATCA and reporting through IGAs, the Department of
Justice’s Swiss
Bank Program continues to reach
non-prosecution agreements with Swiss financial institutions that facilitated
past non-compliance. As part of these agreements, banks provide
information on potential non-compliance by U.S. taxpayers. Potential civil
penalties increase substantially if U.S. taxpayers associated with participating
banks wait to apply to OVDP to resolve their tax obligations.
No comments:
Post a Comment