United States citizens and residents with offshore banking relationships should know that the U.S. Government is forcing offshore banks to disclose their accounts. Government efforts to discover unreported offshore bank accounts include new legislation, new treaties and law suits against foreign banks.
The 2012 OVDP, if successfully completed, prevents the prosecution for tax crimes such as tax evasion and failure to file tax returns, as well as for failure to report the offshore account. The offshore account is reported by the filing of IRS Form TD F 90-22.1, known as an FBAR. Criminal prosecution may still occur if the IRS believes that full disclosure was not made. To avoid criminal prosecution the OVDP must be successfully completed. The IRS has on occasion kicked people out of the OVDP and started a criminal investigation. For that reason it is of the utmost importance that an attorney experienced in criminal tax defense and the OVDP be consulted and retained.
Anyone with questions or concerns is welcome to contact Mark L. Horwitz for a confidential consultation.