Are offshore bank accounts illegal?

As I have mentioned previously in this column, the IRS has launched an aggressive offensive campaign against people who have offshore bank accounts.  It is certainly not illegal to have an offshore account or credit card and there are many legitimate reasons to maintain one.  However, many people who have them are trying to “launder” money to evade paying taxes.  The IRS assumes the worst in these cases.  The taxpayer has the burden of proving his reasons are not illegal and he has to be very careful in presenting his case.  I strongly recommend that you retain a professional such as my firm to handle the situation if you are contacted by a revenue agent concerning a foreign bank account or foreign credit card.  The worst-case-scenario ending of an investigation like this is not only a very large fine, but possible jail time as well!  You cannot afford to take chances.