U.S. tax filers who have offshore accounts and don't report them -- or who naively fall for scammers selling an offshore tax scheme -- may face large fines and penalties, the IRS warned.
The agency said it has carried out thousands of audits of offshore schemes and pursued charges that have resulted in "billions of dollars in criminal fines and restitutions."
Related: IRS warns of shady tax preparers
"Taxpayers are best served by coming in voluntarily and getting their taxes and filing requirements in order," said IRS Commissioner John Koskinen.
To get people to fess up, the agency has an Offshore Voluntary Disclosure Program. Taxpayers who voluntarily report previously undisclosed offshore accounts may see penalties reduced and avoid criminal prosecution.
Plus, a new set of reporting rules are being phased in under the Foreign Account Tax Compliance Act that will require foreign financial institutions to report accounts held by U.S. citizens to the IRS. It's similar to the way your bank here might send a 1099-INT form to the agency, reporting the interest income you earned, or your employer sending the IRS your W-2 at tax time.
