The IRS offshore voluntary disclosure program is a new solution to an old problem. If you’ve got money stored in any type of foreign account, you need to take advantage of these 5 tips. Otherwise, you could find yourself in big trouble!

1. Don’t assume you don’t qualify for the program

If you think that you’re not enough of a “big player” to be a target of the IRS offshore voluntary disclosure program, think again. The rules apply to any U.S. taxpayer that has more than $10,000 stored in a foreign bank, at any time of the calendar year.

And, the program isn’t just limited to bank accounts. If you invest in offshore mutual funds, hedge funds, annuities, or even have debit cards for your offshore accounts, you fall under the program, too.

2. Don’t procrastinate

When it comes to paying taxes, most people put it off as long as possible. However, if you do that, you’re taking a huge risk. According to the rules of the IRS offshore voluntary disclosure program, you have to file your FBAR – the form that lists all of your foreign financial information – by June 30th. And, unlike traditional income taxes, you can’t file an extension. So, if you’re late, you’re subjecting yourself to huge fines and even jail time!

3. Don’t go it alone

Unless you’re an IRS attorney, you don’t understand all of the nuances that surround this program. The IRS offshore voluntary disclosure program can get awfully complicated – especially if you’re already dealing with some issues. The best way to deal with any current or future problems is to get in contact with a qualified IRS attorney as soon as possible.

4. Don’t get rid of your old tax information

Under the IRS offshore voluntary disclosure program, federal investigators are allowed to look at FBARs from previous years. If they can prove that you haven’t filed everything properly and timely, they can charge you fines, interest, and penalties on back taxes that go back as far as 8 years!

5. Don’t assume that you won’t get caught

If you think that the IRS doesn’t have the resources to go after every single taxpayer that has money in foreign accounts, think again! As part of the offshore voluntary disclosure program, the IRS created a special investigation unit, specifically to go after people who aren’t following offshore tax rules. Right now, thousands of agents are dedicated specifically to this cause – meaning they’ll find out about you sooner or later!