Israeli Offshore Banking Being Scrutinized by the IRS
The IRS has given international tax compliance a top priority with the IRS Commissioner announcing, “The IRS will vigorously pursue tax cheats around the world, no matter how remote or secret the location.” Consequently, IRS criminal investigators are piercing the veil of Israeli bank secrecy in an effort to combat offshore tax evasion.
The U.S. government is utilizing various means to discover U.S. citizens who have secret offshore bank accounts including new treaties, legislation such as the Foreign Account Tax Compliance Act (FATCA), andJohn Doe Summons to force offshore banks to disclose U.S. account holders. Among the countries targeted is Israel and one of it’s major financial institutions, Bank Leumi.
An undisclosed offshore bank account holder can avoid criminal prosecution by entering the Offshore Voluntary Disclosure Program (OVDP)before the IRS receives the account information from the offshore bank. Because the consequences of an undisclosed offshore bank account are so serious, the OVDP should be given serious consideration as soon as possible. Experienced attorney, Mark Horwitz, is willing to provide a confidential consultation on this important, life-altering matter.