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Understand How IRS Amnesty Works Before Entering 2014 OVDP

Less than two months are left before the 2014 IRS Offshore Voluntary Disclosure Program (“2014 OVDP”) closes on September 28, 2018. 2014 OVDP may offer great benefits to taxpayers with undisclosed foreign accounts, such as the possibility of avoiding criminal penalties and greatly reducing FBAR civil penalties. Yet, entering 2014 OVDP also implies a great variety of obligations and complications that many taxpayers will find overly invasive and burdensome. Moreover, non-willful taxpayers may resent not only the amount of paperwork, but also the 27.5% to 50% OVDP Miscellaneous Offshore Penalty.

Furthermore, 2014 OVDP has its own eligibility requirements which may simply prevent a taxpayer from being able to participate in the program. Unfortunately, the taxpayer may only find out about it after he submits his OVDP application, thereby exposing himself to potential IRS investigation and penalties.

In sum, entering 2014 OVDP is an important and highly complex decision that requires a detailed evaluation of the taxpayers’ facts. 2014 OVDP is not the best solution for everyone, but it may be a critical opportunity to settle past tax noncompliance for some taxpayers (especially taxpayers whose noncompliance is likely to be considered “willful” by the IRS) – an opportunity that should not be wasted.

Such legal analysis should only be done by a skilled international tax attorney who specializes in the area of offshore voluntary disclosures. The stakes are simply too high to entrust a matter of such importance to anyone else.

Experienced International Tax Attorney Sherayzen Can Help You With Your Offshore Voluntary Disclosure

Mr. Eugene Sherayzen is an international tax attorney who specializes in offshore voluntary disclosures. In fact, this speciality occupies more than 80% of his entire practice. Mr. Sherayzen has helped his clients with respect to every major IRS voluntary disclosure program, including 2009 OVDP, 2011 OVDI, 2012 OVDP, 2014 OVDP, Streamlined Domestic Offshore Procedures, Streamlined Foreign Offshore Procedures, Delinquent FBAR Submission Procedures and Delinquent International Information Return Submission Procedures.

Additionally, Mr. Sherayzen has conducted a great number of statutory voluntary disclosures based on Reasonable Cause exception or so called “Noisy Disclosures” (they were very popular prior to 2009 as well as between 2009 OVDP and the creation of the Streamlined Filing Compliance Procedures).

Furthermore, Mr. Sherayzen represented his clients during the IRS audits of offshore voluntary disclosures, has extensive experience with IRS appeals and federal court litigation.

Contact Attorney Sherayzen Before Entering 2014 OVDP

Such an extensive work with offshore voluntary disclosures makes Mr. Sherayzen one of the most experienced offshore voluntary disclosure lawyers whose opinion should be obtained before entering 2014 OVDP.

Contact Mr. Sherayzen Today to Schedule Your Confidential Consultation!

DOJ Program for Swiss Banks: Important June 2014 Developments

In a series of articles, we covered the U.S. Department of Justice’s new voluntary disclosure program for Swiss banks and the four filing categories involved. In June of 2014, a number of important developments regarding the DOJ Program for Swiss Banks occurred.

In this article, we will explain some of these new developments. This article is intended to provide interested individuals with general information about these developments, and does not convey tax or legal advice. If you have an offshore account, you should seek the advice of a tax attorney as significant penalties are involved. The experienced tax law firm of Sherayzen Law Office, Ltd. can assist you in your voluntary offshore disclosure and other tax and legal matters.

DOJ Program for Swiss Banks: DOJ Extends Deadline for Category 2 Swiss Banks

On June 5, 2014, the U.S. Department of Justice announced that it would extend the original June 30 deadline for category 2 Swiss banks for one month until July 31st. According to various new sources, the deadline was extended because of the difficulties Swiss banks were having in attempting to verify whether the accounts of U.S. taxpayers were undeclared or disclosed in a timely fashion to the IRS.

More than 100 Swiss banks have already applied under the DOJ program for Swiss Banks. For U.S. taxpayers with undisclosed bank accounts in Switzerland, this is highly welcome news.

Goldman Sachs and Morgan Stanley Swiss Units Apply to Enter the DOJ Program for Swiss Banks; Citigroup and J.P. Morgan Maybe Next

Recently, the Swiss units of Goldman Sachs Group Inc. and Morgan Stanley announced that they will enter the DOJ Program for Swiss Banks. According to various sources, Goldman’s Swiss private bank managed nearly $12 billion in assets as of year-end 2013. Morgan Stanley’s Swiss private bank managed about $50.7 billion- most of this amount however, was located in its branches in Hong Kong and Singapore.

Citigroup Inc. and J.P. Morgan also have Swiss operations; according to several news sources, Citibank Switzerland AG did not yet enter category 2, but this is definitely a possibility. Same is true of J.P. Morgan’s private Swiss bank.

DOJ Program for Swiss Banks: Credit Suisse Pleads Guilty

Recently, Credit Suisse pleaded guilty to conspiracy and agreed to pay $2.6 billion in a settlement with the DOJ. Please, read this article for more information.

DOJ Likely to Increase Focus on Undisclosed Accounts of US Taxpayers in the Cayman Islands, Singapore and Cook Islands, Among Others

The DOJ and the IRS have provided various indications that they intend to expand the scope of the U.S. pursuit of undisclosed foreign accounts to other major tax havens, such as Cayman Islands, Singapore, Cook Islands, Panama, et cetera.

For example, in an interview concerning the Credit Suisse case, Kathryn Keneally, former head of the Justice Department’s tax division, signaled the DOJ’s intentions to increase their focus on other tax-havens. After noting that the U.S. has traced (often, using the information collected during the DOJ Program for Swiss Banks) the money transfers to accounts held by U.S. persons in banks located in the Cayman Islands and other Caribbean countries, India, Israel, Luxembourg, and Lichtenstein, she highlighted the following: “It’s fair to say we know where the tax-haven countries are. You’ve got Singapore, you’ve got the Cook Islands… .”

The DOJ Program for Swiss Banks has provided an enormous amount of information regarding not only the Swiss bank accounts, but transfers to other countries. As Dena Iverson, a DOJ spokeswoman noted in a recent news article, “Through the program [the DOJ Program for Swiss Banks], as well as through ongoing investigations and other law enforcement tools, we are confident that we will obtain information that will lead us to account holders who have thought for too long that they can keep hiding.”

U.S. persons who hold accounts in Singapore, Cook Islands, Cayman Islands, Israel, India, Lebanon and other “target” countries should immediately seek advice in disclosing their offshore accounts. The worldwide FATCA compliance, combined with the potential of having another equivalent of the DOJ Program for Swiss Banks in any other of these countries, makes it simply reckless to wait for the DOJ and the IRS investigations.

2014 OVDP

On June 18, 2014, the IRS announced a major update to its 2012 Offshore Voluntary Disclosure Program (OVDP), which includes new opportunities and penalties. See this article for further information.

The 2014 OVDP is directly relevant to U.S. taxpayers with undisclosed accounts in Swiss Banks which are currently working within the DOJ Program for Swiss Banks, because the banks’ disclosure of the unreported accounts may substantially reduce the available voluntary disclosure options for the U.S. taxpayers who own these accounts. Moreover, the US taxpayers with undisclosed accounts in the entities that are categorized under the DOJ Program for Swiss Banks as Category 1 banks may be subject to heightened penalties under the new 2014 OVDP rules.

This is why it is very important to coordinate your voluntary disclosure with the DOJ Program for Swiss Banks.

Contact Sherayzen Law Office for Professional Help with Your Offshore Voluntary Disclosure

If you have undisclosed foreign accounts in Switzerland, contact Sherayzen Law Office for experienced legal help. Whether or not you received a letter from a Swiss Bank pursuant to the DOJ Program for Swiss Banks, time is likely to be of critical importance for you.

Contact Us today to Schedule Your Confidential Consultation – We Can Help!