IRS Ready For 2015 FATCA Enforcement and U.S. Account Disclosures By Foreign Banks

The Internal Revenue Service (IRS) is prepared to receive the account disclosures of information of U.S. taxpayers’ offshore accounts from thousands of participating foreign financial institutions in 2015, according to recent comments by IRS Commissioner John Koskinen.  In compliance with the Foreign Account Tax Compliance Act (FATCA), some 120,000 foreign banks and financial institutions are expected to have begun disclosing the account information of U.S. taxpayers to the IRS starting January 1, 2015.   For U.S. taxpayers, the pressure to disclose unreported overseas accounts and avoid substantial penalties and criminal prosecution will continue to intensify, as the account disclosures are likely to lead to numerous IRS investigations of unreported accounts.  Once under investigation, U.S. taxpayers will be unable to take advantage of IRS voluntary disclosure programs, which allow participants to report their foreign accounts in exchange for lower penalties and amnesty from criminal prosecution.  As the IRS and U.S. Department of Justice continue to prioritize enforcement of offshore tax evasion in 2015, the time is now for U.S. taxpayers to protect themselves and their accounts and assets. If you have unreported foreign accounts or assets, contact the experienced international tax attorney at Daniel Rosefelt & Associates, LLC, Attorney & CPA to discuss your legal options.