Offshore accounts have a number of potential advantages, including a higher overall level of privacy and, in some cases, increased asset protection. Unfortunately, they can also bring with them a number of potential challenges, including increased scrutiny and reporting requirements. With the help of a Baltimore offshore account lawyer, you could navigate those requirements and protect your rights more effectively. A tax attorney is ready to help with your needs.
The IRS requires individuals who have a foreign accounts, including offshore accounts, to file an FBAR, the Report of Foreign Bank and Financial Accounts, for any account that exceeds $10,000 in value at any time during the financial year. These reports help the IRS track any earnings that have been placed in foreign accounts and ensure that individuals with those accounts are meeting their financial obligations. A Baltimore lawyer could ensure that individuals and businesses with offshore accounts meet their reporting obligations and report any income or assets contained in those accounts properly.
Some individuals and entities, including government entities, are exempt from FBAR reporting requirements. Working with a lawyer is key to ensuring that the individual is fully exempt and that there are no other reporting requirements they need to take into account.
The United States taxes the income its citizens earn worldwide, including income that is ultimately held in offshore accounts. However, in some cases, the taxpayer may not realize the reporting requirements they may face when dealing with foreign income or accounts. In other cases, a taxpayer may deliberately withhold information about foreign accounts to avoid tax implications.
The Voluntary Disclosure Program allows individuals who have previously underreported or failed to report those accounts to get back in compliance. For individuals who unintentionally hid those assets, the Streamlined Procedures for the Voluntary Disclosure Program may prove more effective. However, the Voluntary Disclosure Program also offers solutions for individuals who deliberately and willfully hid assets to avoid criminal implications.
Whether a taxpayer deliberately underreported foreign assets or was not aware of full reporting requirements, a Baltimore offshore account attorney could prove essential in getting back in compliance and avoiding potential criminal charges.
If the IRS discovers a previously unreported or underreported account, it can lead to significant difficulties. Managing IRS audits and investigations properly can go a long way toward avoiding potential penalties—and the help of an offshore account lawyer in Baltimore could prove invaluable. Not only that, an attorney could negotiate with the IRS or state tax agencies, decreasing the potential penalties of noncompliance and providing the taxpayer with better grounds to manage their needs in the future.
Offshore accounts can make it more difficult for both creditors and legal authorities to seize them in a dispute. A Baltimore offshore account attorney could help individuals determine the right strategy to protect their assets while remaining in compliance with the law.
If you have an offshore account that exceeds $10,000 in value, you need to make sure that you are remaining in compliance with the law in order to avoid costly penalties or criminal implications. A Baltimore offshore account lawyer could provide the information you need to navigate those complex situations correctly. Reach out to Whiteford Tax Defense to learn more about how we can assist you with your offshore account.