The “Anonymous Swiss Bank Account” is a Thing of the Past, and to Avoid IRS Controversy it’s Important to Disclose Foreign Assets
The iconic “anonymous Swiss bank account” has achieved almost legendary status in TV shows and movies. These accounts were helpful for wealthy Americans who wanted to hold their wealth overseas and away from prying eyes… and away from the IRS!
And while this practice used to work for many people, in recent years the IRS has cracked down harshly on Americans attempting to conceal assets overseas, to the point where the famed anonymous Swiss bank accounts are no more. Americans who have assets in these types of foreign accounts are urged to come clean or face potentially devastating penalties. As a recent FOX Business article reports:
During the past several years, the IRS has become aware of a significant amount of income generated by foreign bank accounts that has gone unreported and untaxed. The agency has taken steps to eliminate this problem, meaning the days of the numbered Swiss Bank Account are gone.
You are likely aware that if you have a foreign financial account, including a bank account, brokerage account, mutual fund, trust or other type of foreign financial account with $10,000 USD or more in the account at any time during the year, you must complete an annual FBAR report FinCen 114, and file it with the IRS by July 31 of each year. There are severe penalties if you do not come forward and file this report.
If you have money invested overseas and you haven’t reported it to the IRS, it’s important that you comply as soon as possible – as penalties get worse if you wait. If you find yourself in this situation, don’t delay any further – please contact us immediately.
Of course, you don’t have to be a wealthy investor with overseas assets in order to face IRS trouble – the agency spends plenty of time harassing taxpayers right here at home. If you are stuck in an IRS controversy and need assistance, we can help. Please contact us today to learn more!