From the Tax Law Offices of David W. Klasing – Does the IRS Access Your Bank Accounts in the United States and Abroad? | national news
IRVINE, Calif., November 24, 2021 / PRNewswire / – In today’s post-911 world, the value of privacy is at an all-time high. Many American taxpayers simply don’t realize how much their finances can already be exposed, both to third parties and to the federal government. Based on recent statements by IRS officials, any unwanted financial transparency is likely to increase over time.
More recently, the Treasury Department announced revisions to its plan to implement specific reporting requirements for domestic banks and continue to collect FACTA-related information from offshore banks that have U.S. taxpayer clients. These proposals have been strictly scrutinized by national and international banking communities and conservative lawmakers, but the IRS makes no secret that it plans to use the new measures as soon as they become available. This will undoubtedly, combined with increased IRS funding, result in more civil audits and criminal tax prosecutions, which should alarm all taxpayers, not just those at the top of the income chain.
You may be able to take action now to reduce the risk of a costly government audit or criminal tax investigations. The first step in this process is to schedule a consultation with the law firms of David W. Klasing. Our dual licensed tax attorneys and CPAs can assess your tax filing history, no matter how complex, and help you ensure successful criminal tax prosecutions under the right circumstances. Call (800) 681-1295 today or schedule online today to book an initial consultation at a reduced rate.
Treasury Department Amends Original Proposal Regarding Bank Reporting Requirements
The US government is making changes to an initial plan that would increase reporting requirements for US banks. The initial plan, proposed in May 2021, would require banks with U.S. account holders to disclose the total amount of money entering and leaving an account. These figures should be broken down according to whether the transaction involved a foreign entity and the same account holder controlled both the source account and the beneficiary. Everything counts with more than $ 600 of transactions would be subject to the reporting requirements proposed in May.
In response to widespread concerns about the original proposal, the Biden administration and the Treasury Department have now made changes to the proposal that would be a substantial step from what was originally proposed in May. In the new proposal, the trigger for the IRS return would be when more than $ 10,000 transfers are made to the same account for one year. Proposal $ 10,000 threshold would not take into account salary or salary deposits. Banks could round their reported figures to the nearest $ 1,000.
The banks are naturally determined to oppose this action. The American Bankers Association (ABA) has indicated it will oppose such a measure, regardless of recent changes, as long as the plan implements additional reporting requirements.
How does the new IRS reporting initiative affect bank accounts in the United States?
The proposal contains critical details that could impact the functioning of banks in the future if adopted. Although the proposal does not include additional taxes or tax increases, these additional measures may have an impact on the way your bank manages your account.
Banks are already responsible for declaring interest income. The form used for this purpose, Form 1099-INT, would be a little longer. However, the government says spending data will not be collected through this form and the requirement is limited to the amount of money coming in and out of the account.
While the administration insists the measure aims to target upper-class tax evaders with opaque income streams from sources other than wages, opponents of the measure are wary of its impact on other taxpayers. . Lawmakers across the aisle are warning that the new reporting guidelines could be used to accuse working-class taxpayers of honest mistakes. This would fit with the IRS’s earlier pattern of behavior, which actually targets low-income U.S. taxpayers for audits at higher rates than higher-income people.
With the prospect of this proposal becoming law in the future, banks face the difficult task of increasing supervision and generating more complex deposits with the government. Meeting these requirements will cost time and money. It is to be expected that these costs are likely to be passed on to the account holder. If the new plan is adopted, you can reasonably expect an increase in bank charges to compensate for the additional legwork.
What can you do to prevent possible IRS audits?
If the IRS gets access to this new data directly from the banks, the doors to possible civil, eggshell and inverted eggshell, and criminal tax investigations will likely open wide, leaving tens of thousands of taxpayers exposed in ways they had never been before. . If you are concerned about the prospect of a civil audit or criminal tax investigation in light of these new developments in Washington, you can act proactively to protect your net worth and your very freedom.
One way to defend yourself against an audit is voluntary disclosure. Many U.S. taxpayers take advantage of the government’s voluntary disclosure program every year. In essence, the IRS is more likely to favorably view taxpayers who voluntarily submit additional information that changes inconsistencies in previous returns. By obtaining this favor, disclosing taxpayers will normally see their potential civil fines reduced and their criminal exposure entirely eliminated.
Voluntary disclosure is a delicate process. If the government is already aware of the tax irregularity to be disclosed, the disclosure can hurt the taxpayer more than it helps. Never attempt to voluntarily disclose additional financial information to the government without first speaking to one of the dual licensed tax attorneys and CPAs at the tax law offices of David W. Klasing. Whether you are already facing an audit or are concerned that an IRS Special Agent for Criminal Investigations may show up at your doorstep in the future, we invite you to contact us today for assistance. ‘aid.
To note: As long as a taxpayer who has deliberately committed tax crimes (potentially including un-filed foreign information returns coupled with positive U.S. income tax avoidance on offshore income) self-reports tax evasion (including including a scheme of unregistered declarations) through national or foreign voluntary disclosure before the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can normally be successfully returned to tax compliance and receive an almost guaranteed pass on criminal tax prosecutions and simultaneously often receive a break with civil sanctions that would otherwise apply.
He is imperative that you hire a experienced and reputable criminal tax defense lawyer to guide you through the voluntary disclosure process. Only a lawyer has the attorney-client privilege and work product privileges that prevent the same professional you hire from being potentially forced to testify against you, in particular when they have prepared the declarations which must be modified, during a tax audit, an investigation or subsequent criminal proceedings.
What’s more, only a lawyer may subject you to voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only a lawyer trained in criminal tax defense fully understands the risks and benefits of voluntary disclosures and how to protect yourself if you do not qualify for voluntary disclosure.
As Kovel’s uniquely qualified and experienced criminal tax defense lawyers, CPAs and EAs, our firm provides a one-stop-shop to efficiently achieve optimal and predictable results that simultaneously protect your freedom and your net worth. Check out our Testimonials to see what our clients have to say about us!
Want to learn more about the impact of the IRS having access to your bank account? Call us today
If you have not filed a tax return for one or more years, or if you have taken a position on a tax return that could not be substantiated by an audit from the IRS or the tax authority of the State, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best path to federal tax compliance or state without facing criminal prosecution.
To tax law firms in David W. Klasing, our double-certified tax lawyers and CPAs keep abreast of changes in tax legislation so that our clients remain protected. Call our offices at (800) 681-1295 to schedule your initial consultation at a reduced rate.
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Public contact: Dave Klasing Esq. MS-Tax CPA, [email protected]
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