Deadline Looms for Reporting Offshore Accounts

Wednesday, October 14, 2009

October 15th is the deadline for Americans to come clean about the money they have hidden offshore, in places like Swiss bank accounts. [...] They can confess and pay the penalties, or gamble that they will not get caught. With the deadline only days away, tax lawyers say they are being inundated by anxious clients. [...] At least 4,000 clients of UBS and other private banks have come forward in recent months, a government official who had been briefed on the matter said.

Posted by Danforth at 07:31 PM | 27 COMMENTS | permalink | Comment on This Entry

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Danforth

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When did this date change. I recall it was September 23.

#1 | Posted by L_RContrarian at 2009-10-13 11:23 PM | Reply | Flag:

"When did this date change. "

Right before the original deadline.

www.nytimes.com

#2 | Posted by Danforth at 2009-10-14 12:02 AM | Reply | Flag:

No one can say with certainty how much money is out there the accounts are secret but the hoard may be tens of billions of dollars.

Well if the accounts are secret and no one knows how much money is out there then why would anyone bother to come forward and tell the IRS?

Also, does this deadline apply to major companies who incorporate offshore in places like the Bahamas for use as a tax haven which as of now is still legit to do. Or is this deadline only for private citizens with personal accounts who stash earned but unreported money in their own private accounts overseas?

#3 | Posted by CalifChris at 2009-10-14 04:07 AM | Reply | Flag:

"if the accounts are secret and no one knows how much money is out there then why would anyone bother to come forward and tell the IRS?"

These cheaters don't know if they were the ones turned in by UBS or not. If they were, and they get caught, the penalties are huge. If they come forward now, voluntarily, the penalties are a small fraction of what they'd be otherwise. They're basically playing Russian Roulette, betting they weren't one of the folks forced to be revealed by the Swiss (and others). My bet -- and hope -- is that the IRS goes after this with a full court press after tomorrow. All too often they spend a lot of man-hours chasing after a couple of hundred bucks. This is, potentially, billions.

"does this deadline apply to major companies who incorporate offshore in places like the Bahamas for use as a tax haven which as of now is still legit to do. Or is this deadline only for private citizens with personal accounts who stash earned but unreported money in their own private accounts overseas?"

To my understanding, the legit stuff is still legit...why, I don't know, unless the politicians are in the pockets of the corporations skirting the taxes. But this mainly for citizens who either have hidden offshore accounts, or try other shenanigans to avoid and evade, like loading up debit cards, laundering through multiple accounts, etc.

#4 | Posted by Danforth at 2009-10-14 07:15 AM | Reply | Flag:

I am sure none of you basement dwelling BK fry cooks have anything to worry about here.

#5 | Posted by chickenrancher at 2009-10-14 09:52 AM | Reply | Flag:

It's not illegal to have offshore accounts. It is illegal not to report income from them. And most of the reasons to have offshore accounts are completely legitimate--business interests in a foreign country, for example. What's amusing are the ones that open them primarily to keep current or ex-spouses from knowledge of huge piles of other assets.
And in these cases, their legal problems have only just begun.

#6 | Posted by rightisright at 2009-10-14 11:43 AM | Reply | Flag:

stash it somewhere else. roll the big dice. be there after you do your bit. blame Bill Gates for making the world a smaller place.

#7 | Posted by AuntieSocial at 2009-10-14 07:40 PM | Reply | Flag:

I try to empathize but, sadly, I feel indifferent.
Worse, I admit to feeling a tiny amount of glee at their sad conumdrum. Pay the piper and be safe or roll the dice......and spend time with Birnie?????
Probably a few unexpected deaths occurring with bodies mysteriously lost at sea.
This would have made a great Reality Series, "Bank Accounts of the Rich and Dishonest....how far will some people go to avoid paying their taxes....

#8 | Posted by danni at 2009-10-14 07:55 PM | Reply | Flag:

#5 | Posted by chickenrancher at 2009-10-14 09:52 AM
***"I am sure none of you basement dwelling BK fry cooks have anything to worry about here."

Good, good to know!!!

I'm sure that in your lifetime vocation as a "Honey Bucket" waste removal technician you'll probably be okay too...

I guess that ole' adage "same shit different day" really applies in your line of work, eh???

#9 | Posted by Capt_Of_Uranus at 2009-10-14 08:00 PM | Reply | Flag:

In government's desperation for more revenue, they're driving capital out of this country. One more strike against capitalism that assures the continued destruction of this country.

#10 | Posted by Ray at 2009-10-14 08:24 PM | Reply | Flag:

#10 | Posted by Ray at 2009-10-14 08:24 PM

So, exactly what is the use of "capital" to this country if it's untaxable???

Oh, that's right only the poor and middle class have to pay taxes...

#11 | Posted by Capt_Of_Uranus at 2009-10-14 09:02 PM | Reply | Flag:

Good come back capt of uranus #9. Heh, heh, heh!

#12 | Posted by rightnut at 2009-10-14 09:49 PM | Reply | Flag:

Got to wipe the beer and boogers off my screen, I'll be back.

#13 | Posted by rightnut at 2009-10-14 09:50 PM | Reply | Flag:

This is just a play by the big boys who really run the banks. It's all about who 'paid their dues' and who did not. Eventually they will get everyone who is not a part of the New World Order. This is beginning to look like the end game Alex Jones has been yelling about for decades. Personally I can't stand the guy, but he does do his homework.

#14 | Posted by RingMaster at 2009-10-14 10:35 PM | Reply | Flag:

"In government's desperation for more revenue, they're driving capital out of this country."

That is hilarious, considering this money is hidden in foreign banks. Clue to Ray, this captital has left the building.

#15 | Posted by danni at 2009-10-14 10:42 PM | Reply | Flag:

#4 posted by danforth....As a general rule, U. S. corporations operating in foreign countries do so through the use of foreign subsidiaries which are not subject to the jurisdiction of the United States. The income of the foreign corporations is taxed to the U. S. parent when such income is repatriated through dividends or by other means.

#16 | Posted by gluon at 2009-10-14 11:27 PM | Reply | Flag:

did Gietner, Wrangel, & Daschle cut deals - - - or immune?

#17 | Posted by markh at 2009-10-14 11:40 PM | Reply | Flag:

Yes Vermin, you do have to report the earnings you made off your she-male.

#18 | Posted by furio at 2009-10-15 02:01 AM | Reply | Flag:

Simply put if you have more than $10000 in any combo of foreign banks accounts you have to annually report all of them to the fed. If you do not then they can hit you for up to $10,000 in penalties for every year of non-reporting. They are real assholes.

Second if you own, family owns, close friends own, beer buddies own, etc down the line (check out the IRS list of qualifying relationships) any foreign company then you have a huge document to fill out which I think is estimated to take 20 hours or more. Again you have the up to $10,000 penalty. Almost no one fills them out unless they have holdings in a large company. A lot of people have simple companies for passing through contract work. I forget if it is a 30% or 50% stake which is the trigger point.

It is a joke.

#19 | Posted by furio at 2009-10-15 02:08 AM | Reply | Flag:

As grandfather used to say "Oh to have such a problem"

#20 | Posted by SLBronkowitz at 2009-10-15 06:37 AM | Reply | Flag:

So, exactly what is the use of "capital" to this country if it's untaxable???

The proper use of capital is to create goods, services and jobs. Taxes are a waste of capital because they are not used to actually produce anything.

#21 | Posted by Redman at 2009-10-15 11:18 AM | Reply | Flag:

No one can say with certainty how much money is out there the accounts are secret but the hoard may be tens of billions of dollars.

Well if the accounts are secret and no one knows how much money is out there then why would anyone bother to come forward and tell the IRS?

#3 | Posted by CalifChris

it only applies to individuals as corporations have more rights than individuals against the abuses perpetrated by the State.

Individuals are easy pickings to the IRS.

All the deadline does is allow more time for the wealthy to liquidate and move assets to countries that wont collaborate with the US if said individuals are targeted.

#22 | Posted by Legio at 2009-10-15 11:26 AM | Reply | Flag:

All the deadline does is allow more time for the wealthy to liquidate and move assets to countries that wont collaborate with the US if said individuals are targeted.

They may try, but the money is just a paper trip anyway. The feds are looking at the records and going after the assets of the cheaters. The assets are the money.

#23 | Posted by RingMaster at 2009-10-15 12:07 PM | Reply | Flag:

So, exactly what is the use of "capital" to this country if it's untaxable???
Oh, that's right only the poor and middle class have to pay taxes...
#11 | Posted by Capt_Of_Uranus

Capital is used for building factories and creating jobs. Without capital, the poor and middle class will get poorer.

What will government do with taxes? So far, they're enriching their bankster friends.

#24 | Posted by Ray at 2009-10-15 04:42 PM | Reply | Flag:

That is hilarious, considering this money is hidden in foreign banks. Clue to Ray, this captital has left the building.
#15 | Posted by danni

That was my point. And it will continue to leave this country.

#25 | Posted by Ray at 2009-10-15 04:45 PM | Reply | Flag:

All the deadline does is allow more time for the wealthy to liquidate and move assets to countries that wont collaborate with the US if said individuals are targeted.

They may try, but the money is just a paper trip anyway. The feds are looking at the records and going after the assets of the cheaters. The assets are the money.

#23 | Posted by RingMaster

at this point its too little too late..If you are hiding billions..whats a few million forfeited?

#26 | Posted by Legio at 2009-10-15 05:44 PM | Reply | Flag:

"That was my point. And it will continue to leave this country."

Yes of course, unless though, we do something about it. Which the Obama administration, for the first time in a long time, is trying to do. I applaud this effort, some of the filthy rich will be too slick and won't be caught, but a few will be and fuck them. It is time we demanded that those who benefit from our economy pay their fair share and if not then let them spend some time with Bernie.
Fuck them.

#27 | Posted by danni at 2009-10-15 08:55 PM | Reply | Flag: