Tax evaders beware!

The IRS recently announced it’s joining forces with the United Kingdom and Australia to crack down on a virtual army of tax evaders. These citizens routinely evade their fiscal responsibilities to their home countries by using foreign trusts and companies to hold their assets.The three partner nations can track a substantial amount of data regarding the foreign holdings, including individual owners and the advisors who assisted in establishing them. While the primary beneficiaries will be the governments of these three nations, the countries’ tax administrators also developed a plan to share the data with other jurisdictions if the information is requested and relevant. Acting IRS Commissioner Steven T. Miller says the goal is to leave “no safe haven for people trying to illegally evade taxes.”Holding assets through offshore entities is not illegal . . . unless the practice is specifically employed to evade taxes. Law-abiding taxpayers already report these entities, but the IRS still encourages all owners of offshore entities to review their holdings and ensure they’ve met their tax obligations.If you’re unsure of whether or not you’re in compliance, consult your attorney or CPA to determine if you should participate in the IRS’ Offshore Voluntary Disclosure Program to avoid potential penalties and criminal prosecution.At Patrick & Robinson CPAs, we know tax evasion hurts the honest taxpayers, who ultimately pay the crime’s price when government turns to them to make up the shortfall. We give our clients the advantage by helping them minimize their tax obligations legally…and plan for their futures. If we can help you, contact us at Office@CPAsite.com or 904-396-5400.