Knowledgeable Legal Representation When Investigations Of Your Foreign Bank Accounts Occur

In an IRS effort of enormous proportions, the Internal Revenue Service (IRS) is examining foreign bank accounts of U.S. citizens to determine if income from these sources has gone unreported. Certain banks in specific countries have been targeted to date. Any foreign banking or financial institution that holds accounts for U.S. citizens is open to future scrutiny.

Contact Theodore L. Craft regarding representation regarding issues related to your foreign bank accounts.

Experienced Lawyer At Your Side During Investigations

The investigation of foreign bank accounts is part of the IRS's initiative further to the achievement of transparency in tax reporting. United States citizens using credit cards issued by a foreign or offshore bank or financial institution for expenses [the terms "foreign" and "offshore" are synonymous as used here], that is, paying bills with funds from an offshore account, were first targeted. Foreign institution based checking, savings and brokerage accounts held by or in the name of United States citizens or people "controlled" by them are the current targets.

Until the initiatives began with summonses on credit card companies to reveal the identities of their cardholders, taxpayers with foreign accounts generally appeared to believe that they were behind a "firewall". However, beginning with IRS summonses against major credit card companies resulting in identification of foreign bank-issued credit card, the firewall has come down.

Failure To File, FBARS And Other Accusations

Records produced pursuant to U.S. and international laws have resulted in numerous U.S. citizens being accused of hiding assets and of other illegal tax activities, although funding overseas bank accounts without disclosure on income tax returns and failure to file foreign bank reports known as "FBARS" are the most common offenses.

Civil and criminal accusations have included:

  • Income tax and/or foreign account nondisclosure penalties liability or civil tax fraud
  • Criminal charges relating to:
    • Depositing of the proceeds from money laundering
    • Creation of false documents or account statements
    • Tax evasion

Whether The Voluntary Disclosure Option Is Right For You

Individuals who came under IRS scrutiny or investigation in the normal course of the IRS "program" relating to the profiling of foreign accounts were able, if they qualified, to participate in compliance initiatives the purpose of which was to bring them into compliance without the full measure of penalty imperatives being imposed because of their cooperation. This is an option in most "initiative" cases.

However, the policy of voluntary disclosure exists apart from incentive programs. The difference is that if voluntary disclosure is made absent a set of considerations laid out in a formal program initiative, the IRS may look upon a case as presenting civil or criminal implications and may proceed as it chooses. Although there are no guarantees, voluntary disclosure has historically provided a safe haven from criminal prosecution in all but the most egregious cases even absent any "initiative" for disclosure presented by a "program initiative."

At the law office of Theodore L. Craft, Esq., LLM, clients trust their most complex tax and banking matters to experience. Familiarity with current protocols for the handling of voluntary disclosure cases both in and out of IRS structured settlement programs is necessary for the proper handling of these cases.

Indeed, despite written protocols, agents of the IRS often have, and exercise considerable discretion in the way in which they take in and process information. A working understanding of the initiatives of IRS to close down "Swiss banking" as a non-disclosed activity and knowledge of the foreign bank account annual reporting rules and procedures are important and evolving aspects of tax defense practice.

For over 12 years in government service as a trial attorney, and 25 years of experience in private practice handling civil and criminal tax matters, including dozens of foreign matters, attorney Ted Craft has been "steeped" in foreign as well as all aspects of criminal and civil tax matters. He is an effective advocate for his clientele. Attorney Craft serves such interests mainly in Boston, Massachusetts and surrounding communities, although he has been involved in trials and representation in defense of clients on a national level during his private career.

Contact Our Law Firm Today

If you are facing the investigation of a foreign bank account, contact the office of Theodore L. Craft, Esq., LLM today at 888-TAX-RISK to further discuss your situation with Mr. Craft.