Offshore Bank Accounts
Resolving Offshore Bank Account Issues
The DC tax attorneys at Thorn Law Group have developed a nationwide practice guiding individuals, banks, trusts, foundations and other organizations through the processes involved in managing and disclosing offshore bank accounts. Each Washington, DC offshore tax attorney at our firm has a thorough understanding of the rapidly developing laws and regulations governing overseas bank accounts. We also have extensive knowledge of the procedures and methods used by the U.S government to monitor and investigate offshore accounts. Our attorneys work closely with clients to identify and resolve potential legal issues in advance in order to bring their offshore bank accounts into compliance with government regulations.
IRS Crack-Down on Offshore Tax Evasion
The IRS has made cracking down on offshore tax evasion a top enforcement priority, and compliance pressure for U.S. taxpayers with offshore accounts is only going to increase. Under the IRS’ Foreign Bank and Financial Accounts Program (FBAR), “each United States person who has a financial interest in or signature or other authority over any foreign financial accounts, including bank, securities, or other type of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year” must disclose the existence of such accounts, and report any income derived from them to the Internal Revenue Service. Taxpayers who fail to file the FBAR (Form 90-22.1) and report their offshore accounts can face serious civil and criminal penalties, including fines, probation and prison sentences.
In addition to filing an FBAR, many U.S. taxpayers must file IRS Form 8938 to report their offshore bank accounts to the federal government each year as well. While taxpayers must file an FBAR with the Financial Crimes Enforcement Network (FinCEN) if the aggregate value of their offshore accounts exceeds $10,000 during the relevant calendar year, taxpayers must file Form 8938 with the IRS if the aggregate value of their offshore accounts and other foreign financial assets surpasses the relevant threshold established under the Financial Account Tax Compliance Act (FATCA):
- Unmarried Taxpayers (or Married Taxpayers Filing Separately) Living in the U.S. – More than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
- Married Taxpayers Living in the U.S. Filing Jointly – More than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
- Unmarried Taxpayers (or Married Taxpayers Filing Separately) Living Abroad – More than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year.
- Married Taxpayers Living Abroad Filing Jointly – More than $400,000 on the last day of the tax year or more than $600,000 at any time during the tax year.
As a result, some taxpayers will need to file an FBAR, some will need to file IRS Form 8938, and some will need to file both. If you have questions about your federal reporting obligations—or if you are concerned that you may be behind on your federal reporting obligations—a Washington D.C. offshore tax attorney at Thorn Law Group can help.
The tax law team at Thorn Law Group counsels clients across the nation facing IRS investigations and possible charges for tax evasion involving their offshore bank accounts. Each Washington, DC tax attorney at our firm has developed a track record of success for resolving offshore bank account investigations and evasion charges as quickly as possible, while minimizing the consequences for our clients.
Voluntary Disclosure Programs
In 2009 and 2011, the IRS established Offshore Voluntary Disclosure Programs (OVDP), which offered reduced civil monetary penalties for taxpayers coming forward with unreported offshore accounts, ensuring that taxpayers would not face the FBAR criminal penalties. While both of these programs have expired, their huge success led to the IRS announcing the creation of a new Offshore Account Amnesty Program in 2012.
The attorneys at Thorn Law Group have extensive experience counseling clients through the voluntary disclosure process. The IRS’ 2012 program provides U.S. taxpayers with previously undisclosed offshore accounts a way to avoid the harshest penalties and potential criminal prosecution. In order to participate in this program, the U.S. taxpayer must comply with strict requirements including paying penalties, back taxes and interest on the offshore account.
As of 2025, U.S. taxpayers have two primary options for proactively resolving offshore account disclosure violations with the IRS. These are (i) the IRS’ Voluntary Disclosure Practice and (ii) the IRS’ Streamlined Filing Compliance Procedures.
The IRS’ Voluntary Disclosure Practice is an option for taxpayers who need to disclose “willful” violations of the FBAR and IRS Form 8938 filing requirements. This includes failure to timely file an FBAR or IRS Form 8938 as well as underreporting offshore bank accounts on either of these forms. While disclosing willful violations of the law to the IRS can help to facilitate a favorable resolution, it can also present substantial risks, so the representation of an experienced Washington D.C. offshore tax attorney is essential.
Using the IRS’ Streamlined Filing Compliance Procedures is an option for taxpayers who need to disclose non-willful or inadvertent offshore bank account reporting violations. Additional eligibility criteria apply as well. If you have only recently learned about the obligation to report offshore bank accounts to the IRS or FinCEN, then engaging an experienced Washington D.C. offshore tax attorney to assist with submitting a streamlined filing could be your best option.
Crucially, submitting a voluntary disclosure or streamlined filing is only an option if the IRS is not already looking into your filing history. If you are currently facing scrutiny from the IRS related to your offshore holdings, a Washington D.C. offshore tax attorney at our firm can assist with determining what other options you may have available.
Our firm currently represents numerous individuals, trusts, estates and companies participating in the IRS Voluntary Disclosure Program. Every Washington, DC tax lawyer at our firm has an in-depth understanding of how this program operates and uses this knowledge to help navigate clients through the voluntary disclosure of their offshore accounts and other foreign assets.
Nationwide Practice Handling Offshore Bank Account and International Tax Issues
At Thorn Law Group, each Washington, DC tax lawyer is committed to working with our clients to develop the best strategies and solutions to resolve tax issues arising out of offshore bank accounts. As lawyers, we understand the laws, options and defenses available to obtain the best results. We use our knowledge and experience to develop the most effective plans for bringing our clients into tax reporting compliance. Our attorneys counsel and represent clients across the United States regarding a broad range of offshore bank account and other international tax issues, including:
For more information about our international tax law practice, or to discuss your offshore bank account concerns, contact Kevin E. Thorn, Managing Partner of the Thorn Law Group, at 202-349-4033.
