International taxes can be quite complex for businesses, and it can be even more overwhelming to realize that you have inadvertently failed to report your offshore assets to the IRS. Unfortunately, there are many people who will look to take advantage of your fear and concern and cause you to panic. In reality, this is something that happens regularly, and you do not need to worry that you will immediately be hit with millions of dollars of fines or forced to go to court. At MKS&H, we can help walk you through the process of disclosing your assets and correcting any information that the IRS has wrong. Why should you disclose your offshore assets?
Make Taxpayers Willful
Many non-willful taxpayers can take advantage of specialized programs designed to get them into compliance. It’s important to note that, once you know that you need to disclose your offshore assets and fail to do so, it can be considered willful noncompliance. This can place you at risk of incurring penalties and reduce the programs that you might be eligible for to regain your good standing.
It’s Easy to Disclose Your Offshore Assets
One of the biggest reasons why it’s easier than ever to complete your disclosure is the Streamlined Filing Compliance Procedures from the IRS. These procedures make it easy to disclose your offshore assets and make sure that you won’t be penalized. The Streamlined Foreign Offshore Program waives all offshore penalties. However, the IRS may decide to apply penalties in the future, so it’s a good idea to get into compliance now before it might cost you to do so.
Offshore Voluntary Disclosures Are Getting More Strict
Recently, there has been an expansion of the traditional voluntary disclosure program, which is also known as VDP, to include offshore accounts and assets. The penalty applied will be 50% of the highest year’s maximum asset or account balances, and the IRS will be less gracious and understanding when you request a penalty reduction. Because the IRS is getting more aggressive with penalties and now refusing to waive some penalties entirely, willful taxpayers who don’t qualify for a non-willful program should take care to gain compliance now before things become more expensive in the future.
Overcome International Tax Challenges with Help from MKS&H
MKS&H provides tax and accounting services to businesses of every size and in every industry. We can work with you to make international taxes easily and avoid the most common international payroll challenges. Contact us today for a consultation.
About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.