Undisclosed offshore assets
Federal law requires that, every year, citizens and resident aliens of the United States disclose certain assets held outside of the United States to the federal government. This may include bank accounts, real property, ownership in foreign entities and more. If you are required to, but do not, meet this filing requirement, you may be subject to both criminal prosecution and substantial penalties.
The IRS has set up procedures and programs to allow citizens and resident aliens to disclose foreign assets and attempt to avoid criminal prosecution and reduce the associated penalties. However, these procedures and programs are subject to change at any time. This tax problem should be discussed with an experienced tax professional.
The taxpayer, a US citizen, had moved to Australia and began operating a business. While in Australia, she mistakenly believed that she was not required to file income tax returns with the IRS. She returned to the United States several years later, only to learn she had made a costly mistake. After consulting with Attorney Gregory Dzialo, she also learned that she was required to disclose her bank accounts to the US government each year. There are criminal issues and steep civil penalties associated with not honoring your taxpayer obligations (especially if the obligations involve international issues). With the help of attorney Gregory Dzialo she was able to make a Streamlined Voluntary Disclosure submission and her exposure to penalties and criminal prosecution was greatly reduced.