Many people benefit from having offshore bank accounts held at foreign financial institutions. Those who travel frequently or who live abroad may want a bank account at a foreign financial institution in a country where they work or do business or travel. If you want to diversify and have some of your assets held in currencies other than dollars, putting your money into a foreign bank also makes a lot of sense.

If you invest money offshore in any foreign financial institution, you should be aware of how the global crackdown on offshore tax evasion is reshaping the international banking industry. A Boston tax attorney can provide you with insight and assistance in understanding your rights as an offshore investor amidst profound regulatory changes and can help you to protect your financial situation as the IRS and other global taxing authorities crackdown on offshore investors.

A Boston tax audit attorney can help you if you are under investigation by the IRS because of offshore financial accounts. In recent years, the criminal division of the IRS has actually significantly increased the number of cases that it originates that are connected to the global financial market. This increase in cases that relate to international tax issues -- which happened at a time when there was a decline in the total number of cases opened by the criminal investigation division -- is cause for major concern for those who have undeclared offshore funds.

The IRS has been aggressively cracking down on offshore investors who are not in compliance with tax rules requiring them to report their accounts and pay taxes on offshore income. The IRS has used a number of different tools, including compelling banks to turn over details about their accountholders in order for the banks to avoid criminal prosecution for facilitating tax evasion. 

The Paradise Papers were a massive leak of financial documents, with around 13.4 million confidential documents turned over to reporters. The Paradise Papers provided a glimpse into the world of offshore banking, similar to the insider look offered by previous leaks such as the Panama Papers.  Those who have offshore funds whose information was revealed by The Paradise Papers could find themselves facing an investigation by taxing authorities and should contact a Boston tax evasion attorney for help.