Recently we posted that although the Offshore Voluntary Disclosure Program did not yet have an end date, it may be the time for taxpayers with offshore accounts to come forward as the U.S. continues to negotiate agreements with other countries to share information. Today was another big step towards this end as the U.S. and France agreed to an Intergovernmental Agreement to share information on taxpayers attempting to evade tax using offshore accounts. France becomes the tenth country with such an agreement, joining Denmark, Germany, Ireland, Mexico, Norway, Spain, the United Kingdom, Japan and Switzerland. For taxpayers that did not properly report their foreign bank accounts the clock may be ticking on their opportunity to enter the Offshore Voluntary Disclosure Program, especially for taxpayers in France. Once the IRS discovers the account it is too late to come forward and avoid criminal prosecution under the program.
All tax professionals should make sure their clients are aware of these developments, and taxpayers should also ensure they have properly reported their foreign bank accounts. If you have questions regarding your options or foreign bank account reporting contact us at Hone Maxwell LLP today for a complete analysis of your case including options and risks. For more tax updates and the latest news you can follow us on twitter @HMLLPTax or facebook at www.facebook.com/HoneMaxwellLLP.