Skip to content

IRS Signals Intent to Aggressively Pursue Undisclosed Offshore Accounts

December 11, 2017

At the recent National Institute on Criminal Tax Fraud and Tax Controversy, senior IRS and Department of Justice (Tax) officials sounded the proverbial warning alarm to taxpayers with undisclosed or offshore financial accounts. The message was clear: “We are getting information daily, and we will find you if we have not already.”

Voluntary Disclosure Results Reported

Officials report that the voluntary disclosure programs have generated over 100,000 combined submissions and over $10 billion dollars in tax, penalties and interest. The government believes that there are billions more to be collected.

Warning to Taxpayers: The Government Is Using Aggressive Data Collection Techniques To Find You

To date, over 175 “John Doe” summonses to financial institutions have resulted in millions of pieces of data. Spontaneous exchanges from international financial institutions are now commonplace. In other words, clients of foreign financial institutions may not even be aware that their information has been shared with the U.S. government. The United States plans to issue more John Doe summonses regarding crypto currencies seeking account holder information. They will match the data to tax filings and information and look for inconsistencies. Criminal and/or civil examinations will follow.

Crypto Currency Investigations Also On The Horizon

The IRS has also noted the emergence of crypto currency. They have established a special unit concerning cyber-crime related to crypto currencies and crypto currency markets. Of particular interest is how actual currency enters and exits the crypto-currency system. 

Minimizing Exposure

Time is of the essence to minimize exposure both financially and criminally. Contact us to evaluate your particular situation and to determine if a voluntary disclosure, or other action is appropriate for your circumstances.

Sign up to be the first to access our leading legal insights.

The link you have selected will redirect you to a third-party website located on another server. We are offering the link for your convenience. Varnum has no responsibility for any external websites and makes no express or implied warranties about any external websites.

Please be aware that contacting us via e-mail does not create an attorney-client relationship between you and the firm. Do not send confidential information to the firm until you have spoken with one of our attorneys and receive authorization to send such materials.