Wallingford, CT -- (SBWIRE) -- 06/10/2013 -- Anthony Parent, the founder of IRS Medic at Parent and Parent, a firm of tax attorneys who are devoted to helping their clients with tax-related issues, has just created a new video titled “June 2013 FBAR Update.” The in-depth video, which the FBAR attorney has posted on YouTube, explains in great detail what the latest FBAR update means for taxpayers.
The timing for the new video is perfect; thousands of U.S. citizens are currently busy planning their summer vacations to Europe. While they are there, many people will take some of their holiday time to check in with their overseas banker. If their banker is in Switzerland and they have Swiss bank accounts that might be hidden from the IRS, it is especially important that they watch Parent’s video.
As Parent explained, before travelers head out on their European vacations, they need to understand some unsettling facts. The first is that 350 Swiss banks have agreed to share information with the IRS, including the names behind the alter egos of shell companies that people have traditionally used to avoid detection.
“The second thing they should understand is if they have not properly reported their income, and properly filed their FBAR forms, there is only one way to come clean with the IRS,” Parent said.
“That is the Offshore Voluntary Disclosure Program, or OVDP, and if they have not entered into the program yet, they need to retain legal counsel to do so immediately.”
As Parent pointed out, criminal prosecution may not be the biggest issue that people who have hidden accounts from the IRS have to worry about. Civil penalties may be even more of a problem.
“The way the law works, an IRS FBAR auditor can assume that there was a willful failure to file an FBAR and assess penalties of 50 percent of account value for six years. The only way to avoid this threat is with the OVDP,” he explained.
Finally, Parent said, people should realize that if they filed a “soft” or “quiet” disclosure, the IRS probably knows about them. As he explained, a recent government accounting office (GAO) report identified over 10,000 taxpayers who have accounts over $1 million USD who have filed a soft disclosure.
“The IRS will be targeting these people soon,” Parent said.
“It is my belief the auditors will be looking to assess the willful 50 percent penalties against these individual multiple times. If some did make a soft disclosure, and the IRS is not auditing, they can still get into the OVDP and have their penalties capped at a one-time 27.5 percent of account value, or perhaps even argue for a penalty as low as 5 percent.”
Anybody who would like to learn more about the latest FBAR updates is welcome to watch the newly-created and posted video by Parent. They may also visit the IRS Medic website for more information, or call the firm to set up a no-obligation strategy session.
About IRS Medic: Parent and Parent LLP
Anthony Parent is the founder of IRS Medic at Parent and Parent, a practice of tax attorneys that works to resolve tough tax problems for businesses and individuals in the US and overseas. The firm settles all income and employment tax debts with the IRS and other state agencies. For more information, please visit http://www.irsmedic.com