On behalf of Silver Tax Group posted in Offshore Accounts on Monday, November 13, 2017.
Whenever the phrase “offshore accounts” pops up in newspaper headlines, it often refers to a scandal linked to a public figure. Yet, by itself, holding an offshore account is perfectly fine. In fact, you don’t need to be rich or famous to store money overseas. So what goes wrong when some people hold accounts with foreign banks?
Concern of offshore accounts
The charge occasionally filed against offshore account holders is tax evasion. This happens when the account owner does not accurately report it to the government. Hiding money in other countries is an illegal form of reducing taxes by claiming to own less in assets than one actually does. Taxpayers need to be wary of the unintended consequences from false reporting.
There are several times when reporting funds in another country becomes necessary. Facing these on your own may put you at risk for tax evasion penalties. Offshore account holders should rely on an experienced attorney to guide them through the intricate processes of IRS audits, filing tax returns, and charges of noncompliance with tax law.
Facing a failure to account?
Failure to account for all of your money overseas can lead to fines and possibly even jail time. A tax attorney familiar with the complicated laws involved with offshore banking will know the proper ways to report assets to the government in order to prevent these penalties.
When correctly managed, offshore accounts can facilitate travel and business transactions. This banking solution may also allow you to benefit from exchange rates between currencies. There are many legitimate reasons for Michigan residents to place money in a different country. The consequences of false reporting should not keep responsible taxpayers from considering opening an offshore account.