Academic

Offshore Tax Evaders: You Deserve A Break Today!

By Tim Zinnecker

Leave it to the IRS to offer a creative incentive plan aimed at putting more money in the federal collection plate.

Individuals with offshore accounts must file a Report of Foreign Bank and Financial Accounts with the IRS if the aggregate balance in those accounts exceeds $10,000 at any time during the year.  Believe it or not, some of our wealthy citizens apparently hide money in secret accounts maintained with foreign banks and fail to file the form.  Noncompliance can trigger a steep penalty.  But in an effort to induce these scofflaws to declare their offshore accounts, the IRS is proposing to significantly reduce the penalty (which also may reduce the risk of prosecution).  Story here.

All of this comes while the Justice Department is demanding that banking giant UBS disclose the names of approximately 50,000 Americans with secret accounts in Switzerland, and wealth magnet Liechtenstein considers relaxing its bank secrecy laws.

Stay strong, Andorra!

Full post as published by The Faculty Lounge on March 27, 2009 (boomark / email).