SAN DIEGO, April 19, 2011 /PRNewswire/ -- Placing unreported income into foreign accounts, also known as "off-shoring" is tax evasion, and IRS federal prosecution of tax-evading individuals is no longer an if, but a when. The 2011 Offshore Voluntary Disclosure Initiative (OVDI) expires in August 2011, and will be individuals' last chance to come into tax compliance, says international tax attorney William D. Hartsock, Esq.
"Tax evasion is a failure to pay taxes on taxable income, whether intentional or not. The U.S. government needs the revenue, and the IRS is getting aggressive with violators of international tax law. The OVDI is everyone's last chance," said Mr. Hartsock.
Failure to declare foreign assets and complete all OVDI materials by August 31, 2011 means a non-complying individual could face criminal investigation, an international tax audit, fines up to $500,000 and up to ten years imprisonment.
A recent U.S. study estimated a nationwide gross unreported income of $2 trillion, approximately 18-19 percent of total reportable income. The IRS has been tasked with recovering more of that income, and has made a deal with MasterCard, Visa, and American Express to find offshore tax violators.
"The IRS is in possession of the financials of tens of thousands of Americans who use offshore bank accounts linked to U.S. credit cards to evade taxes. They've got people's information, but they're offering the OVDI as a sort of grace period towards compliance. Once that deadline runs out, we're going to see an upsurge in prosecutions and fines. Now is the time to seek professional help, and get into compliance," said Mr. Hartsock.
For over two decades, the attorneys at TaxLawFirm.net have provided quality, professional legal counsel to both individuals and businesses going through matters related to bankruptcy taxes. For more information or to schedule a consultation, call 858-481-4844, or visit www.taxlawfirm.net today.
Full press release available here: www.taxlawfirm.net/press-releases/placing-unreported-income-in-foreign-accounts-leads-to-irs-prosecution.htm
William D. Hartsock, Esq. is a Certified Tax Law Specialist, international tax lawyer and tax bankruptcy attorney specializing in IRS tax problems. Mr. Hartsock and the tax lawyers at TaxLawFirm.net represent clients throughout California and many other countries. They specialize in quality, professional legal counsel for both individuals and business in need of federal and state tax audit assistance as well as offshore tax support.