Posted On:
October 31, 2009
FBAR Penalties- IRS TargetsTaxpayers with Foreign Bank Accounts in South Korea, Hong Kong and Singapore
Internal Revenue Service IRS issued a statement this week stating that they will be pursuing foreign bank accounts held by US taxpayers in other countries including South Korea, Hong Kong, Singapore and several European countries.
US Senate also introduced a new tax and banking legislation which will further frustrate US taxpayers seeking tax shelters through foreign bank accounts.
Individuals and entities would be required to report offshore accounts with values of $50,000 or more on their tax returns. The statute of limitations will be extended to six years when offshore accounts are unreported or misreported.
Advisors who help to set up offshore accounts would be required to disclose their activities or pay a penalty.
