International Tax

The Internal Revenue Service (IRS) and Department of Justice (DOJ) are aggressively pursuing taxpayers with undeclared offshore assets and accounts and continue to place this issue at the forefront of their annual agenda. For taxpayers who have offshore accounts, it is important to disclose that information before those accounts are discovered by the taxing agencies. Failure to voluntarily disclose the information may subject the taxpayer to serious consequences including criminal charges.

At Advocate Solutions, Inc. our practice focuses on tax law issues such as tax compliance concerning foreign assets. We represent individuals and businesses throughout the United States and foreign countries. We have successfully assisted taxpayers in various IRS Voluntary Disclosure Programs concerning offshore accounts.

The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 to combat tax evasion by U.S. residents with assets in offshore accounts or in foreign tax jurisdictions. The law is being phased in through 2018. Taxpayers holding investments outside the United States valued in excess of $10,000 are required to file an annual Report of Foreign Bank and Financial Accounts (FinCen 114) with the IRS, and taxpayers must also complete IRS Form 8938 for certain assets that are valued in excess of $50,000.

FATCA also requires foreign financial institutions to report information directly to the IRS regarding offshore accounts owned by U.S. taxpayers or face harsh penalties and withholding requirements that adversely affect account balances. Increasingly, the United States is working with other countries through Intergovernmental Agreements to exchange accountholder information. We also work with foreign financial institutions regarding FATCA compliance.

In June 2014, the IRS announced new streamlined procedures for qualified taxpayers whose noncompliance is not willful. Taxpayers who qualify may be subject to only a 5% offshore penalty, or no offshore penalty. We are experienced with both the Streamlined Domestic Offshore Procedures and the Streamlined Foreign Offshore Procedures, as well as the Offshore Voluntary Disclosure Program.

For more information or to schedule a consultation with a tax attorney at Advocate Solutions, Inc., call 310.734.2677 or complete the contact us form on this site.