Our Attorneys have expertise in the taxes along with other areas such as criminal litigation, government investigation and regulatory issues. This firm has the intellectual capability to help resolve any tax or regulatory issues for both individuals and corporate entities.

What is Offshore Tax Fraud

Offshore Tax Fraud is a criminal act in which consist of hiding unreported income in order to avoid paying taxes by placing the fund in an international account. This type of tax evasion is nothing new. People have attempted to hide their money in order to keep from paying the IRS.

The truth of the matter is that the IRS has now improved its resources in trying to catch these criminals.   Technology has helped the government track the tax evader in record time unlike before. With new technology and law that make it easier to apprehend the offender.

Enforcing Offshore Tax Fraud

The Internal Revenue is the agency responsible for enforcing the violations of the tax law. In section 7291 of the Internal Revenue Code makes it a felony for willfully evading a tax imposed by the United States. Taxpayers are savvy by manipulating the system that helps them to elude the government by not paying taxes in these offshore accounts.

Offshore tax fraud applies to many professionals from all walks to life.  Mainly, large corporation along with the rich and famous are attracted to offshore accounts. The common factor for many is they want to hide some of their investment funds and not pay taxes that they would normally be obligated to pay.

The Foreign Account Tax Compliance Act (FATCA)

The Foreign Account Tax Compliance Act (FATCA) is the law that is enforced that the Internal Revenue Services in an effort to reduced offshore tax fraud.  FATCA was enacted as a way to find those tax evaders with foreign accounts.

One of the purposes of the FATCA is that U.S. banking and financial institution must withhold a portion of payments made to FFI (foreign financial institution) who refuse to report data on the U.S. citizens.   The FFI’s have the responsibility of reporting information on U.S. taxpayers financial account or those foreign companies that these taxpayers have a vested interest in the tax evader.

Consequences for Offshore Tax Fraud

Dodging one’s taxes is nothing new.  The consequence of offshore tax fraud can be seriously detrimental.

The Federal Government will vigorously go after those tax evaders.   Some of the consequences include:

  • Restraining orders
  • Injunction
  • Guilty pleas
  • Convictions
  • and extremely long jail time

The IRS has been diligent in going after offshore accounts that result in millions of dollars in criminal fines and restitution. The consequences of evading taxes will catch up with those tax evaders because IRS has resources and tools to make enforcement even greater.

What is the Most Popular Destination for Tax Fraud?

People in the United States are looking for places to hide their investments.  The search is always for the best place that will protect them and make sure that their investment is secure. A few places that attract the power brokers and the rich alike are:

  • Luxembourg is a secret gem for hiding assets because of the great tax breaks it provides for the investor.
  • Sunny and tropical places such as Bermuda and Cayman Island are great for big corporations who want to hide their profits.
  • The best place that has no capital gains, inheritance or estate taxes are the British Virgin Island.

These are just some of the places that are tax havens for those that want to hide their resources in the offshore account. The world is so vast that new places are popping up all around the globe.

Criminal Penalties for  Offshore Tax Fraud

The criminal penalties for offshore tax fraud can vary from probation to prison. A majority of time, it is jail time. According to the 26 U.S.C. 720,  a person that is convicted of tax evasion can face up to five years of prison time and a fine of up to $250,000.00.

Further, in 26 U.S. C. 720, it provides that a person who is convicted of a conspiracy to commit offense or to defraud the United States may be eligible for the maximum prison time of five years and a fine up to $250,000.00.

Additional Consequences

Prison time should be enough to deter tax evaders.  Other consequences include the loss of business. If you are a licensed professional such as a doctor, you may lose your medical license.   More importantly, as a convicted tax evader, you will lose the right to vote which is essential in the United. States. Reality is you will have a conviction of being a tax evader

What is the Best Way to Protect Your Investment?

There are many different aspects in reference to securing your assets. One should not have to resort to offshore tax havens and risk going to jail for the majority of your life. The questions become which is important your quality of life or the amount of money that you have.

Streamlined Offshore Disclosure Programs

There are programs available with the IRS such as Streamlined Offshore Disclosure Programs.  Our Attorneys can guide you to the best program for you in reference to offshore accounts.   Regardless if you are an individual or a corporation, our services are the top of the line in reference to providing quality representation.

Our Clients

This firm has the privilege of representing some of the finest people from all walks of life like Accountants, Corporate Officers,  Doctors, CPA’s, Investors, Attorneys, Professors, Students, Entertainers, Athletes.

Our attorney can  provide the necessary guidance in:

  1. discussing your specific situation
  2. help to plot out the best course of action
  3. communicating with the IRS or the appropriate agency
  4. representing your interest for the best possible outcome
  5. communication with the client to keep them abreast as to all phases of the legal process
  6. prepare the client for trial if necessary.

If you want someone who has knowledge, experience and understands the importance of tax liability.  You should give us a call. It will be the best decision ever.