According to a recent AP news report published on Boston.com, Internal Revenue Service (IRS) agents recently raided two Massachusetts businesses working in cooperation with the Federal Bureau of Investigation (FBI) and Massachusetts State Police.

The Internal Revenue Service has been focusing in recent years on cracking down on taxpayers who hide assets offshore in order to avoid paying taxes. There have been numerous programs undertaken, including the Offshore Voluntary Disclosure Program and the Swiss Bank Program, to attempt to identify U.S. affiliated taxpayers with funds kept in foreign financial institutions.

A Boston international tax attorney can provide assistance to any individual or company with investments offshore who is concerned about the possibility that noncompliance with tax laws could be made public.  While there are many legitimate reasons for investing offshore, offshore accounts are inherently treated with suspicion — and if undeclared offshore accounts come to the attention of the IRS, the consequences could include financial penalties and even criminal prosecution if it is determined the accountholder failed to follow the rules.

If you have money in offshore bank accounts or you have signature authority over offshore accounts, you're required to report those accounts to U.S. tax authorities. In addition to declaring accounts to the IRS, you also must comply with a requirement to file a Report of Foreign Bank and Financial Account (FBAR) with the Financial Crimes Enforcement Network (FinCEN) if the aggregate balance of your combined offshore accounts hits $10,000 at any point during the year. Many offshore account holders don't realize they have all these obligations, and thus, inadvertently fail to comply with them.