IRS Uncertain On How to Handle FBAR Delinquents (Massachusetts Tax Alert)

Thursday, November 18, 2010

About 40 years ago the United States decided to harness the power of computers to achieve tax compliance. In doing so, Congress required banks and brokerage companies to report their account holder’s income to the IRS on computerized 1099 forms. Over time, however, tens of thousands of affluent Americans chose to avoid these tax reporting rules by depositing their money offshore. The IRS finally discovered the magnitude of the tax avoidance problem after disgruntled bank employees “blew the whistle” on two foreign banks. Download our analysis below.