Update 2017: Read about the current Offshore Disclosure Programs here.
With offshore account crackdowns in the news, such as today's stories that HSBC is giving up clients' names and Wegelin and Co. is under investigation, we talk to taxpayers everyday wondering if it is too late to utilize the OVDI, even if their bank is under investigation. However, the good news is that with the OVDI extended – no, it's not too late.
A prospective client called us after his own personal banker (i.e., the person who he talked with about his account) at an offshore account was indicted. He had wanted to disclose before, but just could not force himself to do so and he was afraid of what would happen. Now, he was convinced that he waited too long and the only thing left to do was be fitted for an orange jumpsuit.
He called us out of complete desperation, asking us what he could do to minimize his inevitable prison sentence. He believed that the Department of Justice caught him red-handed and he felt that at any point, even while we were talking with him on the phone, that his house would be raided. He feared that his wife, his children, and his home would disappear as he was hauled off in a gray government sedan.
So I said to him, "Yes, I understand your own personal banker is under investigation, but are you?"
He said, "I'm not sure."
I asked him, "Are you under audit?"
He said, "No."
I asked him, "Did any of the money in the bank accounts came from illegal sources, such as gun trafficking or money laundering?"
He laughed and said "No."
So I said, "There is a great chance we can still get you into the program."
He hired us right away to help him come clean using the 2012 OVDI extension.
It was not too late.
We submitted our disclosure letter that afternoon,and within four days we found out that he and his wife were accepted into the program. He was beyond relieved that he no longer had to worry about divorce, prison and poverty.
A happy ending.
Although his case is not closed out yet, and we still are calculating his taxes, interest and penalties, he feels great. And he doesn't mind if I share what he told me to people wondering if they should come clean:
"Anthony, it's just a bill. I really wish I didn't have to pay it, but I'll happily pay it. I was stupid for not coming clean earlier; I've been sweating this out since 2009 and all I wound up doing is stressing myself out completely. I can't tell you how many time I woke up at 3 a.m. and never got back to sleep. I'm sleeping great now, even though my accounts took a hit. Money is money and, you know, I'll get it back. And if I don't, I can live with that too."
If there's one thing we truly can't stand, it's seeing the stress that the IRS is causing people. If you need assistance with your tax matter, contact us. We can help. Call us at 888-727-8796 or email info@irsmedic.com.
