Have a Tax Question? Ask a Tax Expert
Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
You'll need to be a little more descriptive as to what's going on.
Ok...gimme a minute please.
Take your time
My case is a case of voluntary offshore tax disclosure.
It looks as if I will have to pay a tremendous amount of penalties.
I still have to pay some bills and buy a car for my granddaughter and pay my accounts. I do not think I will have enough to satisfy the IRS, who is requesting more than $194,000.00 to be paid in a few days even though my income for the last 6 years from the offshore bank was only $35,000.00 altogether. I will never be able to pay $194,000.00. Can they take my appartment, my car and whatever I own, and leave me in the street? I understand from Mr. Shulman, Commissioner for the IRS, that there will not be any criminal charges against me because of my voluntary disclosure on my own.
You mean you own your apartment or is it an apartment building or what exactly is it?
I own it - paid in full - a condominium.
How do they come up with 194,000. in penalties?
What is the problem, having an offshore investment isn't against the law; what else is going on here?
This is a case of voluntary disclosure
aren't you familiar with that?
All I want to know is if I have insufficient funds to satisfy the IRS, can they take my apartment that I am living in?
They will most likely put a lien on it, so if you were to try & sell it that would be a problem.
Generally they aren't in the business of putting people out in the street, although yes technically they can seize your property.
Does that after my death the apartment would regularly go to my daughter - does taht mean that they would take it at that time, because of the lien?
What have you done to protect yourself?
nothing - I am trying to find out what my rights are
Have you filed a homestead exemption in Florida on your condominium?
Yes, a long time ago
Just a minute I have a call to take; be right back
OK, thanks for accepting; however, in light of what you're saying about the income you earned on the foreign account, the penalty amount seems way, way out of line.............unless of course you mean that you only drew that amount of interest out of the account & there was more interest left on deposit...........what happened to the money that generated the interest income? Something is wrong here if the IRS has accepted you into the voluntary disclosure "program".............it almost sounds like the penalties include what could be charged if you didn't make the voluntary disclosure.............