$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...

IRS Updates FATCA Foreign Asset Reporting Form 8938

The Internal Revenue Service recently released an updated version of the IRS Form 8938 “Statement of Specified Foreign Financial Assets”.   Taxpayers with offshore accounts or assets with values above various thresholds are generally required to file a Form 8938 with their annual federal income tax return.  As a result of the recently implemented U.S. Foreign Account Tax Compliance Act (FATCA), foreign financial institutions have begun reporting U.S. taxpayer account information to the IRS.  Thi...

IRS Ready For 2015 FATCA Enforcement and U.S. Account Disclosures By Foreign Banks

The Internal Revenue Service (IRS) is prepared to receive the account disclosures of information of U.S. taxpayers’ offshore accounts from thousands of participating foreign financial institutions in 2015, according to recent comments by IRS Commissioner John Koskinen.  In compliance with the Foreign Account Tax Compliance Act (FATCA), some 120,000 foreign banks and financial institutions are expected to have begun disclosing the account information of U.S. taxpayers to the IRS starting January...

More Americans Giving Up Citizenship For Offshore Accounts

In July 2014, the Foreign Account Tax Compliance Act (FATCA) was officially implemented, which requires foreign banks to disclose the account information of U.S. taxpayers to the IRS for investigation.  The IRS collects this information on unreported offshore accounts for use in investigation for audit and criminal prosecution of non-compliant U.S. taxpayers. As a result, increasing numbers of Americans are renouncing their U.S. citizenship for tax purposes, according to recent statistics relea...

American Expats Sue Canada over FATCA

Two American expatriates residing in Canada have filed suit against the Canadian government for its compliance with the U.S. government’s controversial Foreign Account Tax Compliance Act (FATCA). Enacted in 2010, but only recently coming into effect, FATCA requires foreign banks to disclose account information to the IRS from all “U.S. persons”, a term that includes dual nationals and citizens now residing abroad. The U.S. government’s goal is to stop offshore tax evasion and require account dis...