Overseas Account Penalties Increase As More Banks Sign On

Overseas Account Penalties Increase As More Banks Sign On

Overseas Account Penalties Increase As More Banks Sign On

It seems that every month we share an article describing the ever-increasing reach of the IRS throughout the world as they attempt to put a stop to any and all taxpayers who would try to avoid paying their fair amount of taxes. This month is no different, as FATCA, the Foreign Account Tax Compliance Act, continues to make its presence felt all over the globe.

The IRS will stop at nothing to find and prosecute tax cheats who are attempting to hide money in foreign financial institutes. That includes punishing foreign banks that refuse to cooperate. In fact, the IRS has had so much success that in just the last five to six weeks, at least eleven more banks located in Switzerland have agreed to join the push. And there will be more in the coming weeks and months.

Penalties Going Up As Well

With FATCA in full fledge attack mode the IRS is getting help from the entire world to put an end to overseas tax evasion. Plus, the number of financial institutions is not the only thing that is rising when it comes to foreign bank account compliance. So you better be aware of the consequences that you might face.

That’s because the IRS has also updated the list of all foreign banks that will carry a 50 percent penalty instead of a 27.5 percent penalty. That penalty is based on the IRS’s Offshore Voluntary Disclosure Program (OVDP) with the highest account balances. This penalty is part of the OVDP reforms that made it more lenient for non-willful taxpayers and tougher on the willful.

More Banks on the Higher Penalty List

There are now 37 banks listed that carry a 50 percent penalty for those taxpayers that were non-compliant. For banks not on this list the penalty is still 27.5 percent, which is a lot, but it’s much better than being prosecuted and paying even more, including civil penalties. For those that are non-willful the impact is less severe. These taxpayers can use the streamlined program, which is less costly and much easier to manage. For willful noncompliant taxpayers the streamlined program is not an option.

OVDP Is a Good Option

The bottom line when it comes to offshore accounts is that compliance still remains the best alternative. If you haven’t been compliant and you’re ready to come clean, then the Offshore Voluntary Disclosure Program is much better than being prosecuted and facing the full wrath if the IRS. Even though 50 percent might seem like a lot, it is much better than the penalties that come along with willful civil violations. Those penalties can be as much as $100,000, or 50 percent of the balance of the account in question for every violation, whichever is greater.

That means the possibility exists that you could be charged with civil penalties that are actually greater than the balance in your foreign account. In that regard, 50 percent doesn’t sound so bad. If you have offshore an account and you’re not sure whether or not you are compliant then you need to speak with GROCO today for help. Click here or call us at 1-877-CPA-2006.

We hope you found this article about “Overseas Account Penalties Increase As More Banks Sign On” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.


Alan L. Olsen, CPA, Wikipedia Bio



GROCO.com is a proud sponsor of The American Dreams Show.



The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business. Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most. They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges. Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in

The Future of Sustainability: Tony Raynor, CEO of Sustainable Green Team

The Future of Sustainability: Tony Raynor, CEO of Sustainable Green Team Watch Tony’s recent Interview with Alan Olsen: https://youtu.be/KAahQYB_LWQ Tony Raynor is the Founder, President and CEO of The Sustainable Green Team, a company working to bring sustainability to our world. Sustainable Green Team, Ltd., through its subsidiaries, provides storm/disaster recovery services. It offers tree,…

Tony Raynor

The Man that Grows Water in Dirt, Tony Raynor CEO of Sustainable Green Team

Transcript: Alan Olsen Hello, this is Alan Olsen and welcome to American Dreams. I’m here today with Tony Raynor. Tony, welcome to today’s show. Tony Raynor Alan, it’s wonderful to be here. Thank you, Alan Olsen Tony, you’ve had the most amazing journey in your life, when there has been, will fill with a lot…

Taking Over the Family Business with Pamela Kan, President of Bishop-Wisecarver Corporation

Taking Over the Family Business with Pamela Kan, President of Bishop-Wisecarver Corporation See Pamela’s recent interview with Alan Olsen on Youtube: https://youtu.be/-KvsbCcfmaM Pamela Kan has been the President of Bishop-Wisecarver Corporation since 1999. She is a highly respected leader in the manufacturing and engineering industry, and has been instrumental in growing the company into the…

Igniting Others With Kary Oberbrunner

Igniting Others With Kary Oberbrunner See Kary’s interview with Alan Olsen on Youtube: https://youtu.be/IfPrM7b9LII Do you struggle through life feeling lost? Do you want to find your dream job or perform better at your current day job? Are you looking for a new secret weapon for mastering life? Kary Oberbrunner is a Wall Street Journal…