{"id":888,"date":"2013-04-29T07:49:22","date_gmt":"2013-04-29T12:49:22","guid":{"rendered":"http:\/\/www.patellawoffices.com\/blog\/?p=888"},"modified":"2013-04-29T07:49:22","modified_gmt":"2013-04-29T12:49:22","slug":"quiet-or-silent-disclosure-commentary-from-the-government-accountability-office","status":"publish","type":"post","link":"https:\/\/patellawoffices.com\/blog\/planning-for-tax-minimization\/quiet-or-silent-disclosure-commentary-from-the-government-accountability-office\/","title":{"rendered":"Quiet or Silent Disclosure Commentary from the Government Accountability Office"},"content":{"rendered":"<p>The recent report from a government watchdog agency called the\u00a0<a href=\"http:\/\/www.gao.gov\/\" target=\"_blank\">Government Accountability Office<\/a>\u00a0(GAO) shows how well the IRS attack on offshore tax evasion is coming. The GAO makes\u00a0<b><i>recommendations<\/i><\/b>\u00a0to 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.<\/p>\n<p>&nbsp;<\/p>\n<p>Despite the significant risks of not coming forward through one of IRS\u2019s<\/p>\n<p>offshore programs, some taxpayers decide to do nothing and remain<\/p>\n<p>noncompliant. Other taxpayers have attempted to disclose their offshore<\/p>\n<p>accounts without paying all the delinquent taxes, interest, and penalties<\/p>\n<p>required by the programs. In a quiet disclosure, taxpayers file amended<\/p>\n<p>tax returns for all or some of the tax years covered by an offshore<\/p>\n<p>program, and report the income from the previously unreported accounts.<\/p>\n<p>The taxpayers would generally pay interest and either accuracy-related or<\/p>\n<p>delinquency penalties on the newly reported income, but would avoid the<\/p>\n<p>higher offshore penalty.<\/p>\n<p>At the same time, taxpayers attempting quiet<\/p>\n<p>disclosures would file late FBARs, if they had not previously filed FBARs,<\/p>\n<p>or amended FBARs, if they had, to disclose the offshore accounts that<\/p>\n<p>they had not previously reported. Taxpayers might also try to circumvent<\/p>\n<p>some of the taxes, interest, and penalties that would otherwise be owed<\/p>\n<p>in offshore programs by reporting the existence of any offshore accounts<\/p>\n<p>and any income from the accounts on their current year\u2019s tax return,<\/p>\n<p>without amending prior years\u2019 returns. These taxpayers would also likely<\/p>\n<p>disclose the existence of the accounts by filing FBARs for the current<\/p>\n<p>calendar year. This filing would appear similar to the opening of a new<\/p>\n<p>account. Such a taxpayer would avoid paying any delinquent taxes,<\/p>\n<p>interest, or penalties, unless audited. As described earlier, taxpayers who<\/p>\n<p>are caught disclosing offshore accounts outside of one of IRS\u2019s offshore<\/p>\n<p>programs risk steeper penalties and criminal prosecution, based on the<\/p>\n<p>facts and circumstances of their cases.<\/p>\n<p>&nbsp;<\/p>\n<p>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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The recent report from a government watchdog agency called the\u00a0Government Accountability Office\u00a0(GAO) shows how well the IRS attack on offshore tax evasion is coming. The GAO makes\u00a0recommendations\u00a0to 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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[19,20,23,24,54,68,25,27],"class_list":["post-888","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization","tag-amnesty","tag-asset-protection","tag-fbar","tag-foreign-account","tag-offshore-accounts","tag-ovdp","tag-penalties-and-interest","tag-voluntary-disclosure"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=888"}],"version-history":[{"count":0,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/888\/revisions"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}