Many people think that keeping money offshore is a good tax shelter but in most of the cases you get ripped off and get in trouble unnecessarily with the IRS. If you are approached with similar proposals, better keep away.
I clicked on a website gloating that it had a program that would eliminate your mortgage in under a year. Wow! A 30-year home loan eliminated in one year. Sounds great; you're in, right? Not so fast. When I subscribed to a mailer to get more information, I received a very cryptic message that said the program was currently put on hold because the US patriot act makes it impossible to proceed with the necessary offshore banking transactions, which were necessary to make the process a success. Now, I'm not sure what all this means, but I do know I don't want someone sending my mortgage payments to some offshore bank account. This sounds like something straight from a John Grisham novel.
There could be some small iota of truth to Snipes saying Kenneth Starr is lying about telling him to pay his taxes, if not for something Snipes himself did. For a man who insists he didn't know he was doing anything wrong, then why did Snipes hide the almost $3 million he was supposed to pay the IRS in taxes in offshore banks and sham companies.? Only a guilty man tries to cover up after himself and Snipes certainly ran around doing a lot of "covering up" for a man who didn't know what he was doing was wrong. And that's the action that's going to burn him.
It's worth the cost - It does cost a couple of hundred dollars to open up an offshore bank account, but you have to consider what it is you are protecting. If you're protecting tens of thousands or even hundreds of thousands of dollars, then the cost of the account is definitely worth it.
In August of this year the EU implemented a little advertised but significant piece of legislation to reduce some of the tax avoidance that has existed for years via numerous international or 'offshore' banking centres.
The deadline for getting your application for the amnesty program started is September their explanation 23, 2009. It is probable that anyone who is discovered after that date with foreign bank accounts and unreported income will face much higher penalties.