Offshore banking is a thing you hear dont hear about in normal, everyday,reallife.
Its for news stories about tax-evaders whogot caught.
Its for this seasons plot of ofHow to Get Away With Murder.
Some people choose offshore accounts for privacy, or to make international transactions easier.
Others choose it to ensure economic or political stability.
Maybe youre not concerned about any of those things.
And were going to assume youre not trying to evade your taxes.
But youve watched enough action movies to know that this is knowledge you might want to have handy someday.
When you bank offshore, you still owe Uncle Sam
Offshore accounts are often considered tax havens.
If your home government doesnt know about your money, they cant tax it, right?
Wrong, my aspiring sneaky friend.
Holding your money in an offshore account is legal.
Hiding it is very much illegal.
Offshore funds get reported on aSchedule B.
The IRS closed its voluntary disclosure program in September 2018.
So, how do you even open an offshore account?
Opening an offshore account is complex, but not difficult.
Once youre all set up, all you have to worry about is doing all your U.S. tax forms!
In 2017, 13.4 million documents leaked relating to offshore banking in whats called theParadise Papersscandal.
For example, millions fromQueen Elizabethsprivate estate were found to be invested in a Cayman Islands fund.
As I noted previously, having an offshore account doesnt necessarily mean someone is up to trouble.
The Paradise Papers reveal was the worlds second biggest data leak, according to The Guardian.
The biggest?The Panama Papers.
So far, more than$1.2 billion in back taxeshas been collected from involved parties around the world.
That scandal has recently come to the subscription screen in ahotly contestedNetflix film,The Laundromat.
