In order to remain compliant, it’s important to report offshore accounts on U.S. international informational forms as well as report offshore income on your U.S. tax returns.

Do you need to report offshore income and accounts in prior years to avoid or reduce the large civil penalties, or potential criminal penalties, imposed by the IRS? The penalties are steep; willful failure to disclose these assets can result in criminal penalties. In addition, there are large civil penalties for failure to disclose—50% of the maximum value of the account or $100,000, whichever is greater—as measured during the compliance period (for willful failure to file). For non-willful failure to file, the penalties can reach $10,000 per international informational form per year.

An international tax professional can help you determine the correct U.S. reporting requirements for each offshore asset and report the proper income. Our team can help you identify the potential benefits and effects, including how the penalties are calculated, as well as the process and requirements of each program. They can also assist you in determining which offshore voluntary disclosure program is right for you.

Our international tax professionals not only deliver exceptional service through their own expertise and experience, they also have access to a global network of CPA firms through our membership in HLB, the global advisory and accounting network.