As I tell my clients the IRS is a collection agency. Generally, they look to collect money where there’s money to be found. Clearly, that’s individuals who make a lot of money.
Douglas Shulman, the IRS Commissioner, told a House committee, “Our long-term investment is to have a trend where wealthy individuals, large corporations, (those) who have really benefited from being in the United States, we’re going to make sure that they pay their taxes.” The Reuters report added that Mr. Shulman said that millionaires have a 5.5% chance of audit while the average individual has just a 1% chance.
Given the IRS’ focus on foreign accounts I strongly urge everyone who needs to report foreign accounts to do so by filing Form TD F 90-22.1 by June 30th. Not doing so is asking for trouble. Not doing so and being a millionaire is really asking for trouble
Tags: FBAR