The Offshore Voluntary Disclosure Program may get the best of you if you don’t follow these 4 tips.

If you don’t want to get swallowed up by the IRS Offshore Voluntary Disclosure Program, follow these 4 tips:

1. See if you meet the guidelines
When most people think of offshore bank accounts, they think of massive sums of money sitting on a tropical island somewhere. However, the IRS Offshore Voluntary Disclosure Program isn’t just for big, rich, “high rollers”. Even if you’re a “little guy”, you might have to abide by its rules.
In fact, you might be surprised to hear that if your offshore bank accounts have more than $10,000 in them at any point in time during the year, you qualify for the Offshore Voluntary Disclosure Program.
Bottom line — more people qualify for this program than you might think. You’ve got to find out if you’re one of them before it’s too late!

2. Learn everything you can about an FBAR
That’s the document you have to fill out every year if you meet the guidelines for the Offshore Voluntary Disclosure (unlike a traditional tax return). In order to make sure you don’t raise any red flags, you’ll need to fill out your FBAR very carefully and send it in before the deadline (which is usually sometime in August — not April, like traditional tax documents here at home)
If you want to speed up the learning curve a little bit, sit down with a tax lawyer who’s an expert on the IRS. A good lawyer will be able to tell you everything you need to know about your FBAR. He can even help you remember to file it on time!

3. Don’t underestimate it
Just because the process works a little bit differently, you don’t want to get caught breaking the rules of the IRS Offshore Voluntary Disclosure Program. In fact, this program comes with all of the same penalties that “regular” taxpayers face here at home — like giant fines and the possibility of jail time.
Ask any tax lawyer who deals with the IRS on a regular basis, and they’ll tell you that the IRS is serious about this program. They even hired thousands of new investigators to look for people breaking the rules. So, whatever you do, don’t underestimate the impact this program can have on your life.

4. Don’t throw anything away
Got proof that you paid your taxes five years ago? Keep it!
Why?
The IRS Offshore Voluntary Disclosure Program allows investigators to go back eight years. So, if you don’t have the documents to prove you followed the rules eight years ago, you can be punished for it now. Do yourself a favor, and hang onto everything!

You can make sure the Offshore Voluntary Disclosure Program doesn’t get the best of you by visiting www.kahntaxlaw.com!