With the Bank Secrecy Act in place, you need to file a form with the Internal Revenue Service to avoid penalties. A new IRS program known as the IRS offshore voluntary disclosure program can help you avoid having to pay some big time penalties to the Internal Revenue Service.
Foreign bank accounts and the income that has been obtained through them have often been utilized as a way to get out of paying your federal income taxes. These accounts were utilized to house money to avoid having to pay interest income on these accounts, as well as dividend income, and other foreign sourced income.
Things have certainly changed though as the Internal Revenue Service has a new law in their back pocket known as the Bank Secrecy act. With this new law they can require you to file form TD F 90-22.1 if you meet certain criteria.
When you have foreign accounts that are in excess of $10,000 in the aggregate at any point throughout the year, you will be required to make this filing with the Internal Revenue Service. This is so that they can monitor the accounts and be sure that you are reporting all of the appropriate foreign sourced income on your federal income taxes. This is to reduce the likelihood that foreign accounts will be utilized to hide money and income throughout the year and during each tax year
Companies such as www.kahntaxlaw.com can help you with taking part in the IRS offshore voluntary disclosure program. The offshore voluntary disclosure program can give you an easy escape out of trouble.