Douglas Tax Blog. U.S.A.
IRS Amnesty and Tax Evasion questions are posed to us now and then, along with both business owners and individuals looking for options for dealing with a tax debt. The first thing we usually need to know is, do you have any unfilled tax returns ? Being in compliance (filling all required tax returns), is imperative if alternatives for dealing with a large tax debt are to be pursued.
When we find out that a person has not filled a large number of tax returns, we often advise them to file right away to avoid the possibility of any type of criminal action by the IRS. The general rule of thumb is that if you seek help, and or file prior to the IRS catching up with you, criminal action usually does not happen, because you are showing are showing a willingness to solve the problem.
We had a client with a huge home health care business in the State of Arizona. They had grown too fast, knew little about taxes, and by the time they realized what had happened, they had over a million in payroll tax debt. They contacted us and the next thing that happened was a call form the owner stating Treasury Department officials with sidearms were at the business wanting to now what they were up to. The difference between any criminal action seemed to be an email from the owner to us, asking for Tax Resolution Services.
When it comes to IRS Amnesty and Tax Evasion, we also get questions about offshore accounts. The IRS has been active for years now, going after anyone who has parked money offshore, in an attempt to avoid taxes. Over $10 billion has been collected in these efforts to date. The IRS Offshore Voluntary Disclosure Program started in 2009, and has been designed to allow individuals to come forward to get back into the tax system.
Even though the Voluntary Disclosure Program has substantial penalties, which have been going up for several years, as long as someone steps up prior to the IRS finding out about them, the general rule is that they will not be criminally convicted. Of course that determination is a lengthy process to determine IRS Amnesty, and yet some situations warrant criminal prosecution.