Skip to content
Tax Law Center Blog

Tax Law Center Blog

  • Tax & Foreign Assets
    • Tax Law Services
    • Foreign Asset Planning
  • About
  • Contact Us
Close Button

Quiet or Silent Disclosure Commentary from the Government Accountability Office

29 April, 2013

The recent report from a government watchdog agency called the Government Accountability Office (GAO) shows how well the IRS attack on offshore tax evasion is coming. The GAO makes recommendations to the IRS, and the IRS pays attention. Those recommendations could put some taxpayers in trouble. Particularly concerning is the Quiet Disclosure commentary. Below is an excerpt from the report.

 

Despite the significant risks of not coming forward through one of IRS’s

offshore programs, some taxpayers decide to do nothing and remain

noncompliant. Other taxpayers have attempted to disclose their offshore

accounts without paying all the delinquent taxes, interest, and penalties

required by the programs. In a quiet disclosure, taxpayers file amended

tax returns for all or some of the tax years covered by an offshore

program, and report the income from the previously unreported accounts.

The taxpayers would generally pay interest and either accuracy-related or

delinquency penalties on the newly reported income, but would avoid the

higher offshore penalty.

At the same time, taxpayers attempting quiet

disclosures would file late FBARs, if they had not previously filed FBARs,

or amended FBARs, if they had, to disclose the offshore accounts that

they had not previously reported. Taxpayers might also try to circumvent

some of the taxes, interest, and penalties that would otherwise be owed

in offshore programs by reporting the existence of any offshore accounts

and any income from the accounts on their current year’s tax return,

without amending prior years’ returns. These taxpayers would also likely

disclose the existence of the accounts by filing FBARs for the current

calendar year. This filing would appear similar to the opening of a new

account. Such a taxpayer would avoid paying any delinquent taxes,

interest, or penalties, unless audited. As described earlier, taxpayers who

are caught disclosing offshore accounts outside of one of IRS’s offshore

programs risk steeper penalties and criminal prosecution, based on the

facts and circumstances of their cases.

 

Patel Law Offices has consulted with hundreds of clients regarding their offshore compliance issues, including Quiet Disclosures. Patel Law Offices is a law firm dedicated to helping clients resolve complicated tax, criminal tax, and international tax problems. Our firm assists (and defends) clients and their advisors to legally disclose (and legitimize) foreign accounts.

Related Posts

  • The "Quiet" or "Silent" Disclosure

    Our office consults with many clients in determining whether they need to enter into the…

  • Silent Disclosure: The Qualified Amended Return (QAR)

    Can I Disclose Issues to the IRS After the Tax Return Is Filed? This question…

  • Swiss Government and US Government Announce New Program for Cooperation and Disclosure by Swiss Banks

    In August 2013, the Swiss Federal Government and the DOJ announced a first of its kind…

Tags: amnestyAsset Protection FBAR foreign account offshore accounts OVDP penalties and interest voluntary disclosure
Category: Planning for Tax Minimization

Post navigation

Previous: HSBC customer Josephine Bhasin Criminal Sentencing Very Light
Next: COURT AUTHORIZES SERVICE OF JOHN DOE SUMMONS SEEKING THE IDENTITIES OF U.S. TAXPAYERS WITH OFFSHORE ACCOUNTS AT CIBC FIRSTCARIBBEAN INTERNATIONAL BANK

Related Posts

Information Sharing of Account Holder Information Officially Begins

The IRS has begun receiving information regarding tax year 2014…

Read More

Estate Planning for 2021 and Beyond: SLATs

The estate and gift tax exemption, which allows each U.S.…

Read More

New Taxpayer Advocate Service Report Discusses Optouts out of the OVDI/OVDP

The Taxpayer Advocate Service (TAS) has issued a new mid-year…

Read More

Recent Posts

  • Still Waiting for Your Employee Retention Tax Credit?: ERC Refund LawsuitsMay 9, 2025
  • Parag Patel Esq. Speaks at Annual Convention of New Jersey Society of Certified Public AccountantsMarch 28, 2025
  • Parag Patel Esq. speaker at the National Association of Enrolled Agents (NAEA) Seminar “2025 Mid-Year Update”March 25, 2025
  • Navigating the Puzzle: Understanding Form 8938 Audit TriggersMarch 21, 2025
  • Navigating Inheritance: The Step-Up in Basis and Recognizing Implied Life Estates After DeathMarch 18, 2025

Pages

  • About Patel Law Offices
  • Delinquent FinCen Form 114 (FBAR) Filings
  • Delinquent or unfiled IRS Form 5471
  • Request A Free Educational Consultation

Law Firm Attorney WordPress Theme By Themespride