• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Pridgeon & Zoss, PLLC

Just another WordPress site

  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Home / Back Taxes Or Tax Debt / $31 trillion in tax havens, IRS offers amnesty for honesty
  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Call
Contact
Blog

$31 trillion in tax havens, IRS offers amnesty for honesty

Like shelters in a storm, tax havens have helped people tuck money away and protect it from outside threats. Some may wonder how this works, but according to financial experts, it isn’t actually that hard. A person would simply set up a foreign corporation and open an account in that corporation’s name. The Internal Revenue Service has a hard time tracking the money from the corporation back to an individual. Current estimates are that $31 trillion in American assets are sitting in offshore bank accounts.

It was recently reported that the IRS is making increased efforts to connect the offshore accounts to American taxpayers. A two-pronged effort is underway. The first prong is amnesty for those who report their foreign earnings. The taxpayer would still need to pay the back taxes and a penalty. The second prong is increased pressure on the banks of other nations to release the names of their American bank account holders. Apparently that strategy is working.

In 2010, Congress passed the Foreign Account Tax Compliance Act which imposed a tax on overseas banks that didn’t turn over American customer names. The IRS was able to negotiate with UBS in Switzerland for the release of names. Other banks in the Caribbean and in Asia are following suit.

The amnesty is apparently working as well. Since the time when it was first offered, about 33,000 people have taken advantage of the offer. The IRS estimates that it has collected $5 billion in revenue from back taxes.

Anyone who wishes to take advantage of the amnesty program would be wise to consult with a tax attorney prior to doing so.

Source: MPR News, “Tax Evaders Beware! Money’s Getting Harder To Hide,” Jim Zarroli, Aug, 8, 2012

Our Twin Cities law firm represents clients with IRS issues related to back taxes and offshore bank accounts similar to the tax issues described in this post.

On Behalf of Pridgeon & Zoss, PLLC Aug 11 2012 Back Taxes Or Tax Debt

Primary Sidebar

Do Not Delay Responding to a Tax Notice

Name(Required)

Practice Areas

Tax Disputes

  • Tax Litigation
  • Audits
  • Tax Appeals
    • Appealing a Levy Action

Business & Payroll Taxes

  • Trust Fund Assessments
  • Complying with Sales and Use Tax Laws

Self-Employed

  • No Taxes Withheld

Outstanding Balances

  • IRS Collections and Currently Not Collectible Status
  • Settlement Options
    • Offers in Compromise
    • Installment Agreements

Latest Blogs

What is a Trust Fund Recovery Penalty?

January 31, 2023

A Guide to the Minnesota Tax Appeal Process

January 27, 2023

The Secret to Successful Self-Employment

October 19, 2022

Things You Should Expect Being Self-Employed in Minnesota

October 13, 2022

The Importance of Source Documents

July 7, 2022

Footer

Edina Tax Law Office

7301 Ohms Lane, Suite 420
Edina, MN 55439

Telephone: 952-835-8320

Fax: 952-835-0201

St. Anthony Tax Law Office:

2812 Anthony Lane S, Suite 200
St. Anthony, Minnesota 55418

Telephone: 612-455-8948

Pridgeon & Zoss, PLLC provides legal counsel for clients in Minnesota and Western Wisconsin

© 2023 Pridgeon & Zoss, PLLC. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy