Question 4

Tax Fraud – Frequently Asked Questions (page 4)

What can be expected for the U.S. taxpayer with undisclosed offshore accounts who did not make the October 15, 2009 Offshore Settlement Initiative deadline?

The IRS will be increasing their campaign of Information Document Requests that target offshore bank accounts. “Taxpayers may receive a Form 6564, Information Document Request, to obtain necessary books, papers, and other information relevant to the IRS examiner inquiry into the truthfulness of a tax return. The Information Document Request is a proper and structured process for the IRS to request and get information from taxpayers, including information regarding offshore bank accounts. Although not as formal as a subpoena, an IDR carries with it consequences for failure to comply and can lead to further inquiry and possible sanction.”