• Skip to content
  • Skip to primary sidebar
  • Skip to footer

Long Island Tax Resolution Services

  • Home
  • About
  • Blog
  • Free Consultation
  • Testimonials
  • En Español
  • Representation
  • Notices
  • Wage Garnishment
  • Back Taxes Help
  • Unfiled Returns
  • Levy
  • .
  • .
  • Call us at: 631-244-1650
You are here: Home / IRS TAX PROBLEMS / Offshore Issues / Should You Be Paying Offshore Taxes?

November 3, 2014 by James Grennen Leave a Comment

Should You Be Paying Offshore Taxes?

‘Offshore’ refers to something that’s carried out away from the mainland. You probably hear it the most when there’s talk about offshore oil drilling or fishing, but what does it have to do with taxes?

In financial terms, ‘offshore’ is used to describe businesses, accounts, assets, or transactions that occur outside the country of citizenship. Even when citizens aren’t physically located in the country, they continue to generate tax liability. If you’re wondering whether you should be paying offshore taxes, you’ve come to the right place.

To better understand the issue, let’s take an example. Say you have a job in the United States. You’re obligated to pay taxes to the government because you’re earning an income. Offshore taxing operates on the same principle. As a US citizen, it is your duty to pay income taxes regardless of where you’re living. Not doing so is a punishable offense. A new law allows the IRS to ask overseas banks for information on its citizens, and the banks must reveal the information. In other words, hiding information is not an option.

The IRS takes it very seriously when citizens store assets and don’t divulge information about income sources abroad. Many people attempt to use various methods to evade taxes, but it is not wise. If you own property or have bank accounts in another country, you must reveal your assets to the IRS. You should also pay off any penalties voluntarily. The longer you don’t, the worse it gets.

You must pay offshore taxes if one or more of the following conditions apply:

  • You own real estate or property offshore
  • You have a business running offshore
  • You have bank accounts in foreign banks
  • You have any other income source based out of your country of residence/citizenship

Apart from stacking penalties and interests, not voluntarily disclosing your offshore assets can lead to criminal prosecution. If that isn’t frightening in itself, your children could also face problems because of your debts.

revenue_budget.jpg.size.xxlarge.promo

What actions should you take to avoid negative contact with the IRS?

The Offshore Voluntary Disclosure Program (OVDP) allows defaulting taxpayers to reveal their offshore assets and accounts. Penalties will be imparted, but it’s the best course of action. We recommend contacting the IRS as soon as possible. You might even be able to appeal against high penalties, which would not be an option without voluntary disclosure.

If you inherited offshore accounts or businesses that you and the IRS were previously unaware of, you can appeal in an attempt to have the penalties removed. Consider talking to a certified tax professional with experience in offshore and international taxes. Don’t take chances when faced with trouble from the IRS – you have too much to lose.

 

Filed Under: Offshore Issues

Learn About Us

  • About Us
  • Enrolled Agents
  • Groups and Associations
  • Our Tax Resolution Process
  • Seven Reasons to Hire Us

About James Grennen

James Grennen is a Certified Tax Resolution Specialist who is expert in solving IRS tax problems and New York State tax problems. He has decades of financial tax experience in addition to being an IRS Enrolled Agent.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search Form

DOWNLOAD A FREE COPY OF THE ESSENTIAL TAX RESOLUTION GUIDE

Cover of the Guide

Your information is safe with us.

Attorney Plus Program

Long Island Tax Resolution Services is Not a Law Firm of Attorney Practice


Please click here to see why our Attorney Plus Program is the smartest way to resolve your IRS or State tax problems.

Be Smart Check List

IRS On Enrolled Agents :

"The Enrolled Agent is the most expansive license that the IRS grants a tax professional.

An Enrolled Agent has earned the privilege of representing taxpayers before the IRS.

Enrolled Agents are generally unrestricted as to which taxpayers they can represent, what types of tax matters they can handle and the IRS offices before which they can practice."


IRS Publication 4693A
(A Guide to the Enrolled Agent Program)

Man trapped by tax

NYS Tax Warrants: What Every Taxpayer Needs to Know

Man thinking. New York State Tax Problems FAQ

10 Frequently Asked Questions about New York State Tax Problems

Top 4 NY State Department of Taxation Collection Actions

Top 4 NY State Department of Taxation Collection Actions and What to Do About Them

Offer In Compromise (OIC): Tips To Getting Yours Accepted

The Penalties for Failing to File a Return or Pay Taxes

Footer

LITRS Company Profile

Long Island Tax Resolution Services specializes in providing affordable solutions to both individuals and small businesses experiencing back tax problems. These are either IRS tax problems or State tax problems.

Resources

Our Process

Privacy Policy

Recent Posts

  • NYS Tax Warrants: What Every Taxpayer Needs to Know
  • 10 Frequently Asked Questions about New York State Tax Problems
  • Top 4 NY State Department of Taxation Collection Actions and What to Do About Them
  • Offer In Compromise (OIC): Tips To Getting Yours Accepted
  • The Penalties for Failing to File a Return or Pay Taxes

Tags

Innocent Spouse Relief IRS Back Taxes IRS Bank Levy IRS Hardship irs notices IRS Offer IRS Penalties IRS Plans IRS Tax Relief IRS Tax Services IRS Wage Garnishment Tax Debts Tax Returns

Locations

Head Office (map above)
    80 Orville Drive, Suite 100Bohemia, NY 11716
    Phone: (631) 244-1650
    Fax: (720) 294-1650
Manhattan Location
    5 Penn Plaza, 23rd FloorNew York, NY 10001
2nd Long Island Location
    626 Rexcorp PlazaWest Tower, 6th FloorUniondale, NY 11556
Westchester Location
    50 Main St, 10th FloorWhite Plains, NY 10606

© Copyright 2014 - 2017 Long Island Tax Resolution Services · All Logos & Trademark Belongs To Their Respective Owners·