The IRS’s New Amnesty Program can help individuals with undisclosed accounts avoid incarceration but the program expires on August 31, 2011. I believe this is the perfect time for taxpayers with undisclosed accounts to take advantage of the IRS’s New Amnesty Program for undisclosed offshore accounts.

DOJ has recently indicted more UBS account holders and continues to investigate other banks around the world. The pressure will only intensify going forward as the government obtains more information from banks and individuals.

I would not wait because participation in the Amnesty Program must be completed by August 31, 2011, not just entered!

A California Federal Judge signed an Order on April 7, 2011, giving the Internal Revenue Service the right to serve a summons on HSBC USA. The summons would provide the government with the identity of current taxpayers whose accounts are already in question.

Over the last few months, the U.S. government has come to believe that many unnamed US taxpayers have been investing with HSBC India and Singapore through HSBC USA. These taxpayers were instructed under faulty tax advice from HSBC banking representatives in order to evade federal taxes. U.S. taxpayers should come forward and disclose all previously undisclosed foreign accounts with HSBC before the U.S. government contacts them.

Contact an experienced tax attorney that specializes in the IRS Voluntary Disclosures today in order to better assess your criminal exposure.

Do not wait, the program closes on August 31, 2011.

On April 13, 2011, Josephine Bhasin, a U.S. taxpayer with an offshore account held with HSBC pled guilty to charges of willingly filing false tax returns, false amended tax returns, and false FBARs. Ms. Bhasin of Huntington, NY, maintained approximately $8.3 mil. in her HSBC account during 2008. The HSBC account holder will receive a maximum sentence of 3 years in jail and a maximum fine of $250,000. These criminal penalties are in addition to civil penalties, which Ms. Bhasin has agreed to; the arrangement includes a civil penalty of 50% of the high year on the account during 2004 to 2009.

An Order was granted for the IRS in regards to a The John Doe Summons and could help the government build cases against U.S. taxpayers who are believed to be evading taxes.

A voluntary disclosure can help prevent this outcome.

The attorneys at Thorn Law Group have experience in assisting U.S. taxpayers into compliance through voluntary disclosure. If you have an undisclosed offshore account contact Thorn Law Group today.