If you work with a good tax relief attorney, he can help you navigate successfully through the IRS Offshore Voluntary Disclosure program. Here’s how.

If you’re not an expert on it, getting through the IRS Offshore Voluntary Disclosure Program can be awfully tough. But if you work with a good tax relief attorney, it will be easier to avoid the pitfalls of this program.

Here’s what a good attorney can do for you:

1. He can make sure you file everything you need to
Some people are confused with the rules of the IRS Offshore Voluntary Disclosure Program. They think that as long as they don’t have $10,000 stored in offshore bank accounts when they file their taxes, they don’t have to report it.

Unfortunately, that’s not the case — and making that mistake can land you in some hot water!
A tax relief attorney can look at your specific financial situation and tell you what you need to do to be in compliance with the program. For example, if you’ve had $10,000 in any of your foreign accounts at any point during the year, you’ll need to declare it.

2. He can make sure your documents get in on time

Typically, when you think of the IRS, you think of an April deadline. However, the Offshore Voluntary Disclosure Program works a little differently. Tax forms for this program are due at the end of August. And, you don’t file a normal 1040 like you do with money that’s here in the U.S. Instead, you have to fill out an FBAR — a special form that’s used solely for the IRS Offshore Voluntary Disclosure Program.

You’ll also need to have tax documents on hand for the past 8 years. If you haven’t paid taxes on that money, you’ll need to send in those documents and make the necessary payments. If you have paid taxes on that money, you’ll need to have prior records on hand to prove that you did everything you were supposed to.

3. He can negotiate less severe penalties

The first two things we discussed applied to people who consulted with a qualified tax relief attorney before there was an issue.

So, what if you got yourself into trouble before talking to a lawyer?

You’re not out of luck — but your attorney’s plan of attack will have to be a little bit different. People who don’t follow the rules of the IRS Offshore Voluntary Disclosure Program can be subject to major fines and even jail time! If you have openly ignored the program, your tax attorney can try to lessen the penalties, but he may not be able to get you off scot-free. A good tax relief attorney will look at your case and will tell you what to do to make things right with the IRS.