Offshore banking is the utilization of a banking system in a nation different than the one in which you reside; most favorably in a strong, stable jurisdiction. Acknowledging that workers typically can maintain contact with spouses, children and others from offshore facilities via phone and the Internet, Barlow said a support network at home is critical to overcome your distance-related limitations.
We highly recommend you speak with your tax advisor before doing this or using any similar method. As numerous prosecutions trumpeted by the IRS make clear, the stakes have never been higher and the potential liabilities can be staggering.
These are standards to which all banks worldwide must comply in order to transmit funds overseas. The best option may be to use two accounts: Other banks require that you visit their bank directly to open an account.
Moreover, the benefits of having an offshore bank account go way beyond alternative investment opportunities and hiding your assets.Americans: You CAN Open Offshore Bank Accounts
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. There Are Big Tax Penalties If you don't comply with one or both sets of obligations the penalties are severe. The responsibility also lies with the account holder to report it properly. Facebook Twitter Pinterest.
You are entitled to have money and investments anywhere in the world as long as you disclose your foreign accounts. If you have significant funds from a business or real estate transaction, you may need to provide sales contracts or other relevant documents.
Failing to file FBARs can be criminal too, and the penalties are even more severe.
If you are in that program, you are probably still slogging through filings and disclosures to the IRS. Plus, bank officials must pass intensive background checks before they can obtain a directorship with the institution.
Note, however, that in publicizing the IRS Voluntary Disclosure Program in 2009, the IRS made clear it would show no mercy to those with undisclosed offshore accounts who didn't turn themselves in by the Oct. Despite the mystique surrounding offshore banking, it is relatively simple to open an account. If they ask questions, you should respond through your attorney and you can't lie.