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  1. day, September 30, 2013
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    Posted by Lance Wallach at 11:47 AM 2 comments:
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    Labels: FBAR, Lance Wallach, Lance Wallach Expert Witness, Newsletter
    Thursday, September 19, 2013
    Tax Cheats Pony Up $5.5 Billion in Amnesty Program






    - The Internal Revenue Service has recouped more than $5.5 billion under a series of programs that offered reduced penalties and no jail time to people who voluntarily disclosed assets they were hiding overseas, government investigators said Friday.

    In all, more than 39,000 tax cheats have come clean under the programs.

    But there's more.

    Government investigators suspect that thousands of other taxpayers have quietly started reporting foreign accounts without paying any penalties or interest. The number of people reporting foreign accounts to the IRS nearly doubled from 2007 to 2010, to 516,000 accounts, a report by the Government Accountability Office said.

    The sharp increase suggests that some people are simply starting to report their accounts without taking part in the disclosure programs, the report said.

    "IRS has detected some taxpayers with previously undisclosed offshore accounts attempting to circumvent paying the taxes, interest and penalties that would otherwise be owed," the report said. "But based on GAO reviews of IRS data, IRS may be missing attempts by other taxpayers attempting to do so."

    Some taxpayers try to avoid penalties through a technique the IRS calls "quiet disclosure," in which they file amended tax returns that report offshore income from prior years. Others simply declare existing offshore accounts for the first time with their current year's tax return, the report said.

    "If successful, these techniques result in lost revenue for the Treasury and undermine the offshore programs' fairness and effectiveness," the report said.

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