$14 Million Civil Penalty Charged for Failure to Report Offshore Accounts

A U.S. permanent resident from South Korea pled guilty on October 26th to charges of failing to report offshore bank accounts to the IRS. Hyung Kwon Kim, a resident of Connecticut and citizen of South Korea, admitted to holding unreported Swiss bank accounts, which were concealed through a number of entities based in offshore tax havens. Mr. Kim also admitted to filing false tax returns from 1999 through 2010, in which he omitted the income generated from his offshore Swiss accounts.

In addition to facing possible prison time and criminal restitution, Mr. Kim has been assessed with a civil penalty of $14 million for his failure to file correct Reports of Foreign Bank and Financial Accounts (FBARs) for the years in question. According to a press release from the Department of Justice about the case, offshore tax evasion remains a “top priority” for U.S. government legal enforcement.

If you have unreported foreign bank accounts, you are at risk. . There are options to get you straight with the IRS such as the Offshore Voluntary Disclosure Program, IRS Streamlined Filing Procedures or FBAR Delinquent Filing Procedures. Don’t wait until the IRS finds you, and it is too late. To learn more, visit our page on offshore voluntary disclosure or contact the experienced offshore voluntary disclosure tax attorneys directly at Daniel Rosefelt & Associates now to discuss your legal options.