IRS Criminal Penalties for Delinquent Offshore Account Holders

IRS Criminal Penalties for Delinquent Offshore Account Holders

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In considering whether or not to participate in the IRS’s Offshore Voluntary Disclosure Initiative (OVDI) taxpayers should be aware that if they do not participate and are caught they face a possible ten year prison sentence, a $500,000 fine and a civil penalty of 50% of the the highest account balance for each year the FBAR was not filed.

Here is the criminal penalty statute:

31 USC § 5322 – Criminal penalties

A person willfully violating this subchapter or a regulation prescribed or order issued under this subchapter (except section 5315 or 5324 of this title or a regulation prescribed under section 5315 or 5324), or willfully violating a regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91–508, while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period, shall be fined not more than $500,000, imprisoned for not more than 10 years, or both.

About Peter Pappas

Peter is a tax attorney and certified public acccountant with over 20 years experience helping taxpayers resolve their IRS and state tax problems.

He has represented thousands of taxpayers who have been experiencing difficulty dealing with the Internal Revenue Service or State tax officials.

He is a member of the American Association of Attorney-Certified Public Accountants, the Florida Bar Association and The Florida Institute of Certified Public Accountants and is admitted to practice before the United States Tax Court, the United States Supreme Court, U.S. District Courts - Middle District of Florida