Offshore Asset Voluntary Disclosure

Your Guide to Offshore Asset Voluntary Disclosure

I cannot stress enough the difference it can make to disclose your offshore assets voluntarily, rather than taking the chance that the IRS does not discover them. There has been an increase in the penalties, an increase in the IRS enforcement efforts and an increase in the amnesty initiatives that attempt to encourage people to make voluntary disclosures.

I am Connie Yi, a San Francisco offshore voluntary disclosure attorney and licensed CPA. At my law firm, Law Offices of Connie Yi, I represent individuals in the San Francisco Bay area who would like to take advantage of voluntary disclosure to prevent the IRS penalties and potential criminal consequences of an audit or discovery of the assets by the IRS.

The civil penalty is steep for offshore assets that the IRS discovers without your voluntary disclosure. The penalty is 50 percent of your largest account balance for every single year that it was not reported. The IRS is currently allowed to go back eight years. With the current voluntary disclosure program, the penalty is reduced to 27.5% for the highest balance during the past eight years, not every year.

Your Legal Intermediary for IRS Amnesty

In my role as a San Francisco offshore voluntary disclosure attorney and licensed CPA, I will be your contact with the IRS for all legal and financial matters related to your offshore assets. The IRS will grant you a partial amnesty for a voluntary disclosure of these assets. In general, the process looks like this:

  • Completion of the form for reporting foreign asset: Foreign Bank Account Reporting (FBAR)
  • Completion of additional forms including Form 8938
  • Completion of amended tax returns as necessary (including the unreported income from the offshore accounts)
  • Submittal of all necessary forms to the IRS
  • Respond and follow-up to any IRS inquiries or requests for documentation/information

If you are under IRS investigation, you are no longer eligible for voluntary disclosure. It is important that you disclose before the IRS discovers.

Even with the assistance of a lawyer, this process can take two years to complete. It is best not to wait.

Contact a Hayward Foreign Account Tax Attorney and Licensed CPA

My California law firm is the Law Offices of Connie Yi, PC. For a confidential discussion regarding your foreign assets, please call 888-312-6978 or send me an e-mail. I look forward to assisting you.