The Department of Justice (DOJ) and the Internal Revenue Service (IRS) are investigating HSBC on charges of money laundering as well as allegations the bank assisted United States taxpayers in committing tax fraud through the use of hidden offshore accounts in India and worldwide. U.S. taxpayers with undisclosed offshore accounts at HSBC and other banks around the world should ensure that their foreign accounts and assets are properly reported to the IRS.
The IRS has announced its 2012 Offshore Voluntary Disclosure Program for taxpayers with undisclosed offshore accounts.
Thorn Law Group currently represents United States taxpayers making voluntary disclosures of their offshore accounts.
Basic terms of the 2012 IRS Amnesty program are:
- The 27.5 percent penalty of the undisclosed offshore accounts that is based on the highest total account balance over an eight-year period.
- Taxpayers must pay back taxes and interest on any unreported income for up to eight years as well as accuracy related and/or delinquency penalties.
- Taxpayers must file all original and amended tax returns and include payments for taxes, interest and accuracy related penalties.
Participants who successfully complete the 2012 IRS Offshore Voluntary Disclosure Program can avoid criminal prosecution, and substantial civil penalties.
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