So what exactly are the consequences to not filing an IRS offshore voluntary disclosure document? The consequences may actually surprise you, as this is a document that the IRS takes very seriously in terms of being able to keep up on all of its potential tax revenue it should have received.
Offshore disclosures are linked directly to those who own foreign bank accounts. If you have accounts with an aggregate balance that topped $10,000 at any point during the year, a filing needs to be made with the Internal Revenue Service. This is all due to the creation of what is known as the Bank Secrecy Act. It was developed and aimed to prevent people from being able to hide money overseas in offshore accounts to avoid such things as interest income to report on their tax return.
Consequences include up to a maximum of $500,000 in fines as well as up to five years in prison if you fail to make the appropriate filing.
If you need assistance with taking part in the IRS offshore voluntary disclosure program it may make the most sense to reach out to an expert. There are plenty of attorneys who specialize in the offshore voluntary disclosure program. One of the more well-known experts out there includes the Law Offices Of Jeffrey B. Kahn, P.C. These experts can help you file timely, and accurately to avoid penalties that could be leveled down on you by the Internal Revenue Service for failure to file.