Take No Corrective Action
Potential Risks
- FULL BLOWN AUDIT
- POTENTIAL PENALTIES EXCEEDING THE VALUE OF OFFHORE ASSETS
- PAY SPECIAL ATTENTION TO FAILURE TO FILE "INFORMATION RETURNS" E.G. 5471, 3520 ETC.
- POSSIBLE CRIMINAL EXPOSURE INCLUDING JAIL TIME
- DEPORTATION OF NON-CITIZENS
Potential Rewards
- NO TAXES
- NO PENALTIES
- NO AUDIT
The last alternative that we could think of is to take no corrective action and leave all your tax filings, as they were originally filed.
We see several deficiencies with this alternative including:
- It does not address the civil and criminal tax exposure for past filings,
- It misses out on the current programs available to address delinquent tax filings,
- It vitiates a reasonable basis defense, since this may be construed as an intentional failure to file the amended returns to address any unreported income, and
- It completely ignores the IRS multiple avenues from which the IRS can obtain this information, including: FATCA disclosures from foreign banks, whistleblower rewards to individuals with this information (e.g, former bank employees, partners, bookkeepers, former spouses & love interests, etc).
This course of action does not provide the advantages of certainty and minimizing exposure.