The Tax Division of the Department of Justice is prosecuting U.S. taxpayers that fail to voluntarily come forward and take advantage of programs like OVDP and Streamline Filing. The guidelines for sentencing in these types of cases has changed drastically since the 1970s. The guidelines now have more flexibility to deviate upwards/downwards while applying principles of both general and specific deterrence.
In cases that involve failure to report income and file FBARs, justice is severed by the draconian civil and criminal penalties assessed against the offender as is illustrated in the Gabella case. Only in the very extreme cases for typical taxpayers or for cases involving the facilitators/promoters of offshore tax evasion schemes should incarceration for any period of time be considered.
Read more about the OVDP guidelines for sentencing
About Five Stone Tax Advisers
Five Stone Tax Advisers has years of experience negotiating directly with the IRS to get the best possible outcome for you. Our International Tax Advisory and Compliance unit has a team of tax attorneys, certified public accountants and enrolled agents that form a single sourced point of contact that will provide services for all the legal, compliance and financial reconstruction aspects of offshore account cases.
