August 28, 2009 – If I have off-shore money, can the IRS take all of my money?
This is a hot topic right now. The IRS has for years had rules for reporting income from all sources, world wide. There is a treasury form which is to be filed annually by June 30th for prior calendar year. This year the filing date has been extended until September 23rd.
This form may show unreported income. Taxpayers have a chance to file the back taxes with a 20% underreporting penalty. Wow, that is alot! Yes, but compared to the amount that the IRS can charge for not voluntarily reporting is nothing. For an example the IRS provides, for a $1,000,000 put offshore five years ago, the cost in penalties, etc to the IRS is over $2,300,000.
Please make an appointment with me if you have a reporting issue.
“This is general discussion of a tax topic and not specifically tax advise. Please see a qualified tax professional.”