Keeping assets in Swiss banks has been a long standing practice by wealthy to moderately-wealthy businessmen out of the United States. For the better part of the past decade, these businessmen and their account-holders have found Swiss banks as a solid method of keeping their capital off of the IRS’ radar. But following a 2009 initiative prompted by President Barack Obama, the IRS began taking drastic measures to expose Americans participating in tax evasion. The initiative led to Switzerland’s largest bank, UBS, closing all offshore accounts to American clients. In addition, UBS and other major Swiss financial institutions were forced to disclose the names of American account holders to the IRS and subsidiary agencies.

This 2009 initiative was just a precursor to this current 2011 initiative, which happens to have stricter guidelines and harsher penalties than that of its predecessor.

While the 2011 Voluntary Disclosure Initiative promises to keep Americans out of jail, understanding the complex international tax and voluntary disclosure forms can be difficult. Furthermore, many Americans with Swiss offshore accounts may not even be privy to the fact that they’re breaking the law. The key thing to keep in mind is: if you are a U.S. citizen with more than $10,000 in a foreign bank account, even a Swiss bank account, you must disclose it to the IRS international tax fraud unit.

If you find yourself unsure of how to approach reporting your offshore account(s), the best thing to do is to hire an offshore bank account lawyer. This lawyer will set up your voluntary disclosure case with specific evidence and testimony. In addition, the lawyer will make sure to bring to light any special circumstances surrounding your account(s) to the IRS. Remember, not everyone’s case is the same.

The deadline to participate in the voluntary disclosure initiative for Swiss offshore accounts is August 31st.

Yesterday the IRS released their new plan for 2011. This plan’s objective is to bring money back to the US tax system. Taxpayers who wish to participate in this program must comply completely with the technical and detailed terms set forth by the IRS. You must gain pre-clearance in order to file an Offshore Voluntary Disclosure Letter. This is significantly different than the old Voluntary Disclosure Initiative. Pre-clearance does not guarantee acceptance into the program. Therefore, it’s important to prepare the Voluntary Disclosure documents well.

The first initiative closed with over 15,000 voluntary disclosures and more than 3,000 since its closing date. There are major differences between the Voluntary Disclosure Initiatives. The new voluntary disclosure includes a new penalty framework. Most notably the taxpayers will be faced with a 25 percent penalty as opposed to the 20 percent penalty of the 2009 OVDI. However, it is possible that taxpayers can be eligible for either a 12.5 percent or 5 percent penalty on undisclosed foreign amounts, based upon the facts and circumstances. This must be proved with sufficient evidence and documentation.

It is imperative to set up your voluntary disclosure case with specific evidence and testimony from inception in order to qualify for the lower penalty rates. For guidance in this complex area, you must contact a tax professional for assistance. William D. Hartsock is a tax attorney experienced in these matters and has handled hundreds of these tax cases throughout the world.

While we would love to attribute this to those caring folks carrying out thousands of income tax audits, the extension is actually due to a holiday observed in the District of Columbia, Emancipation Day, falling on what would usually be tax day.  So whether you file your taxes yourself or you have a tax attorney taking care of your income taxes, still plan on getting them taken care of prior to the usually April 15th deadline. If you’re not quite finished by then, take comfort in knowing that you still have until Monday.

When filing your taxes, remember that honesty is always the best policy to follow. Prevent an income tax audit by making sure the information you provide is true and accurate to the best of your knowledge, as you are far more likely to by audited if things don’t make sense. Make sure you hold on to all important tax information and relevant receipts in case you’re selected. It is also highly recommended that you consult with a reputable tax lawyer to guide this tedious process.

If for some reason you are still unable to meet the extended 2011 income tax filing deadline, it’s important to know this before the deadline as the IRS may charge you late filing fees as well as interest on your unpaid debt. For more information on filing your income taxes this year or assistance with an income tax audit, please visit www.TaxLawFirm.net.

1. They make outrageous claims or promise too-good-to-be-true results.

You know the saying, “if it seems too good to be true, it probably is.” And it’s no different with a tax settlement company. If they tell you they can miraculously negotiate your tax audit away, without hearing any of the details of your case, it’s probably a scam.

2. You learned about them from TV…at 2am.

Sure, everyone needs to advertise their business. But if you saw their commercial on TV between the late, late, late show and a hair remover infomercial, they’re not keeping the best company. Same goes for if they have a snazzy spokesperson yelling at you to “CALL NOW!!!!” A good, honest tax attorney or tax settlement company lets their work speak for itself.

3. They tell you you’re going to settle, before you explain your case.

Sometimes what seems like a massive tax problem to you is actually just a simple mix-up that can be resolved with a few forms sent to the IRS. A skilled and experienced San Diego tax attorney will always ask you questions regarding whether you really owe taxes first, before discussing an offer-in-compromise settlement. Unscrupulous tax settlement companies aren’t actually interested in resolving your issues; they just want the fastest solution – settlement. If the company doesn’t ask questions regarding the taxes you owe, and immediately suggests a settlement during your initial consultation, you should leave immediately.

4. You have a different case representative every time you call.

If you have a different representative working on your case every time you call the company, you are either dealing with a company that has heavy employee turnover (and terrible HR issues), or the company doesn’t care about your case and how it is handled. This is this person that you are trusting with your income tax audit and who is representing you to the IRS, so if you don’t trust your representative, or can’t keep the same one. Change companies immediately!

5. They have a lot of customer complaints.

This may seem like a no-brainer, but a lot of people don’t research tax settlement companies before choosing one. Go online and check out what people are saying about the company; if it’s all complaints and bad news, it’s time to choose a different company.

There are many honest and ethical tax attorneys and settlement companies out there who won’t take advantage of your financial situation. When searching for a settlement company, just remember these top 5 ways on how to spot an unscrupulous settlement company and you’ll find a good company to take care of your financial issues with the IRS.

 Most people wonder what we’re talking about when we say we help individuals and businesses with tax issues, tax appeals and tax crimes. What is a tax crime? Well, it can be anything from failing to file your taxes to perjury to money laundering to bribery.

In our experience, the most common tax crimes are:

1. Tax Evasion – In most basic terms this means a person doesn’t file their taxes, or files their taxes inaccurately, claiming a large number of deductions in proportion to their income or declaring a very small income when they really have a great amount of assets.

2. Failure to File Tax Returns – While this sounds a lot like tax evasion, it’s a lot simpler. Most tax evasion involves people filing their taxes but with inaccuracies. Failure to file tax returns means you are required to file taxes, but you don’t file them by the IRS’ deadline.

3. False Statements – False statements could mean false statements either on a tax return or statements made to an IRS Revenue Agent, Revenue Officer or Special Agent. This does not include accidental inaccuracies; it must be proven that you willfully made untrue statements and knew they were false in order to be convicted of making false statements.

4. Failure to Pay Taxes (Trust Fund Recovery Penalty) – The trust fund recovery penalty refers to the income taxes, Medicare taxes and social security taxes that each employer is required to withhold from their employees’ paychecks. If they do not submit these withholdings to the IRS at the end of the year, all “responsible persons” are required to pay them.

5. Money Laundering – While not technically a tax crime, money laundering is the practice of concealing the source, identity or destination of illegally obtained money, and is generally relevant or linked to a tax case.

6. Conspiracy of a Tax Crime – Conspiracy can apply to any crime, but conspiracy of a tax crime involves entering into an agreement or partnership with someone else to do something which, if actually carried out, would amount to a tax crime.

If you have been accused of any of these tax crimes, or are involved with any other tax issues, we can help. When facing an investigation of any sort by the IRS, it is always best to hire a professional tax attorney from TaxLawFirm.net. A criminal tax attorney from TaxLawFirm.net can help you avoid common mistakes and ensure that you receive the best legal representation possible, so that a small mistake or inaccuracy on your taxes doesn’t turn into a long drawn-out investigation.