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Want to bring your foreign accounts in from the cold?
May 07, 2009
The federal tax law has horrendous penalties for failing to disclose foreign bank accounts. With offshore banking secrecy eroding, folks are quietly considering taking advantage of the current IRS penalty amnesty for foreign bank accounts.
Now the IRS has posted a 30-question FAQ on offshore accounts. Question 12 has a nice example showing how a taxpayer with a $1 million offshore account that has earned $300,000 in interest would fare under the amnesty - total taxes and penalties of $386,000. If they fail to disclose and the IRS discovers the account, the total taxes and penalties could reach $2,306,000 - pretty stiff for a $1 million account.
Via the TaxProf. More on the amnesty offer here.
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Comments
I assume these penalties are waived for Democrat cabinet candidates and former Democrat presidents?
Posted by: Don | May 9, 2009 11:41 AM