IRS to End Offshore Voluntary Compliance Program September 28, 2018

On September 4, 2018, the Internal Revenue Service issued a reminder that taxpayers with undisclosed foreign financial assets have until September 28, 2018, to file a disclosure under the Offshore Voluntary Disclosure Program (OVDP).   The OVDP launched in 2009 as a means for taxpayers to voluntarily past noncompliance related to unreported foreign income or foreign financial assets and failure to file foreign information returns, such as the FBAR.  Since 2009, more than 56,000 taxpayers have...

IRS OVDP To Shut Down in September

The IRS has announced that it will shut down the Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. The OVDP, which started in 2009, allows taxpayers to voluntarily disclose offshore bank accounts and assets that were not originally reported on their tax returns and Reports of Foreign Bank & Financial Accounts (FBARs). Thousands of U.S. taxpayers have used the program in recent years to report their assets to the IRS, paying civil penalties in exchange for amnesty from crimi...

IRS Is Denying Passports for Seriously Delinquent Tax Debtors

Taxpayers preparing to travel internationally may soon have to change their plans if they are behind on their taxes.  Earlier this week, the IRS “strongly encouraged” individuals with “seriously delinquent tax debts” to pay what they owe or enter into a payment agreement, or else they jeopardize their passports. The warning comes as the IRS begins implementing new tax enforcement procedures that were included in the Fixing America’s Surface Transportation (FAST) Act of 2015.  Under the new FA...

$14 Million Civil Penalty Charged for Failure to Report Offshore Accounts

A U.S. permanent resident from South Korea pled guilty on October 26th to charges of failing to report offshore bank accounts to the IRS. Hyung Kwon Kim, a resident of Connecticut and citizen of South Korea, admitted to holding unreported Swiss bank accounts, which were concealed through a number of entities based in offshore tax havens. Mr. Kim also admitted to filing false tax returns from 1999 through 2010, in which he omitted the income generated from his offshore Swiss accounts. In addit...

New York Attorney Pleads Guilty to Tax Evasion

On Thursday, October 12, 2017, Herbert Lindenbaum, a personal injury and medical malpractice attorney, pled guilty to tax evasion, following a nearly two-decade scheme to evade $3.4 million in taxes.  The scheme involved paying family members for work they did not do in order to create the appearance that his firm was earning little to no income, disguising income by depositing business funds into his wife’s personal account, and using his firm’s funds for personal expenses.  Lindenbaum faces up...