IRS Attacks Offshore Trust Accounts
Over the last year the IRS has begun a definite crackdown on offshore trust accounts. These offshore accounts, used by some tax evaders, account for an estimated $6 billion in underreported income. If you read the paper regularly, or business magazines, you'll have certainly noticed the increasing reports and stories about the IRS coming down on Americans with international offshore trust accounts. Not surprisingly, this is in response to the large volume of Americans who have in recent years set up offshore trusts. Some people though are unaware that they've been breaking the law by not reporting their offshore trust gains and paying taxes on their international trust accounts. To complicate matters, many of the investors in offshore trust accounts were led to believe that they would not have to report or pay taxes on gains in their offshore trusts. Now many are getting nailed with stiff penalties by the IRS.
The US Government is now taking offshore trust matters extremely seriously and for, nearly two tears, the Internal Revenue Service has waged an aggressive, concerted war against the use of offshore trusts.
Last year, the IRS collected over $43 billion in enforcement revenue, a 15 percent increase over last year AND a U.S. Record. This type of revenue comes directly from the IRS audits of taxpayers, like you, including offshore trust accounts.
Here are some alarming facts and figures:
- Total audits garnered the IRS more than $1 million.
- Audits of taxpayers earning more than $100,000 topped 195,000, a 40 percent increase over last year.
- More than 2 million taxpayers were fined.
- Criminal investigations jumped 20 percent over last year.
About Offshore Trusts
Business Owners and Individuals consider offshore alternatives because they may offer greater Asset Protection Opportunities, Business Flexibility, Tax Minimization Potential and Privacy Protection than using strictly domestic options.
With the right structure, offshore trust accounts can be a very good tool, especially for very high net worth individuals. However, in order to organize and maintain a legitimate offshore trust, you should be prepared to have experienced offshore trust professionals on your side. Offshore trust tax laws are continually changing, both in the US and in the foreign jurisdictions. If your offshore trust isn't constantly updated or structured properly, you could be in for big trouble.
About Our Company
TaxLawFirm.net is an aggressive tax firm whose practice is limited to tax disputes with the IRS and state governmental tax agencies. This includes offshore trusts. A free initial telephone call to us should answer your most compelling questions. This no obligation telephone call is strictly confidential and protected by the attorney – client privilege and will never be disclosed. We look forward to hearing from you and discussing your audit international tax situation.
We can help you:
- Structure your offshore trust accounts properly.
- Updated your offshore trusts to stay current with both US and foreign tax law.
- Protect your foreign assets
- Determine if offshore trusts are for you.
For over two decades, the attorneys at TaxLawFirm.net have provided adept legal counsel to both individuals and businesses going through matters related to discharge taxes through bankruptcy. In addition to helping you with negotiation and representation, our tax attorneys are there to fight for your rights. The lawyers at TaxLawFirm.net are specialists in discharge taxes and bankruptcy-related matters.
Contact us to schedule a Tax Attorney consultation. Evening and weekend hours are available by appointment.