When I registered this domain name (investoffshore.com), back in 1994, I did it because I thought, at that time, that everyone would one day invest offshore. I understood the power of the Internet from the very beginning and just assumed that because of it’s ability to bring any ‘n all information to your finger-tips, that eventually everyone would buy or own anything, almost anywhere.

My prediction was that tax havens would thrive and global commerce would flourish, operated from jurisdictions more friendly to what I saw as the “new gold rush”. Many of my future trend predictions were correct but what I had no background, or prior experience to understand, is how quickly capitalism becomes a monopoly and then Government get’s involved.

Over five years ago we started reporting here, that offshore investing and offshore banking were under threat of extinction.  We all know now that FATCA, the foreign account tax compliance act, which was made fun-of on Saturday Night Live, and has been brought to the attention of anyone paying attention to money news, or mainstream media. Switzerland, the mighty tax haven giant has been slain by the U.S. Department of Justice and today Cayman Islands is being water-boarded to give up all it’s client names.

Everyone knows that “offshore” is a dirty word, connected to money laundering and terrorism financing (according to the media). However, having said all that, constantly people write us asking about setting up an IBC with banking and a trading account. Somehow there appears to be a big disconnect of perception from reality, and every day my associates and myself are re-educating people who have been misinformed.

Much of the confusion about the offshore is created by leading websites in the Expat and Offshore niche. Many of these online Guru’s are recommending the same products and services, to create structures, for which millions of other people have already paid a heavy price for owning. Like sending sheep to the slaughter. I’m embarrassed by it and refuse to name names because I believe that they are acting with their sincere best intention, just rationalizing that it’s still working for them, living overseas in luxury, with stashes of money in many safe places “off-the-grid”.

Our message here on Invest Offshore has now become even more succinct. We provide information to help people “invest offshore, on the grid, secure and private”.

Written into the IRS tax code is a section called 402(b) and it refers to overseas retirement plans.

[box type=”tick” size=”large” style=”rounded” border=”full”]Our advantage is understanding the answer to the question that we started asking over 5 years ago – and it goes like this;

If an IBC controlled by a trust, no longer works to provide offshore asset protection…. what does work?[/box]

[box type=”alert” size=”large” style=”rounded” border=”full”]IRS has enjoyed record years because of American’s who’ve opted for the Offshore Voluntary Disclosure Program (OVDP – below).[/box]

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How to Make an Offshore Voluntary Disclosure

The Offshore Voluntary Disclosure Program (OVDP) is offered to those taxpayers with undisclosed offshore accounts or assets. Please follow the process outlined below. You should refer to How to Make a Domestic Voluntary Disclosure if the undisclosed accounts are domestic in nature.

Pre-Clearance:

Taxpayers or representatives may fax to the IRS Criminal Investigation Lead Development Center at (267) 941-1115 the following:

(a) Applicant identifying information including complete names, dates of birth (if applicable), tax identification numbers, addresses, and telephone numbers.

(b) Identifying information of all financial institutions at which undisclosed OVDP assets (see FAQ 35) were held. Identifying information for financial institutions includes complete names (including all DBAs and pseudonyms), addresses, and telephone numbers.

(c) Identifying information of all foreign and domestic entities (e.g., corporations, partnerships, limited liability companies, trusts, foundations) through which the undisclosed OVDP assets (see ) were held by the taxpayer seeking to participate in the OVDP; this does not include any entities traded on a public stock exchange. Information must be provided for both current and dissolved entities. Identifying information for entities includes complete names (including all DBAs and pseudonyms), employer identification numbers (if applicable), addresses, and the jurisdiction in which the entities were organized.

(d) Executed power of attorney forms (if represented).

In the case of jointly filed returns each spouse should request preclearance.

IRS Criminal Investigation will then notify taxpayers or their representatives via fax whether or not they have been cleared to make a voluntary disclosure using the Offshore Voluntary Disclosures Letter (Form 14457) and attachment (Form 14454). Taxpayers or representatives with questions regarding the OVDP procedures can call (267) 941-1607.

Note: Pre-clearance does not guarantee a taxpayer acceptance into the Offshore Voluntary Disclosure Program.

Offshore Voluntary Disclosure Letter

If the taxpayer chooses to submit a pre-clearance request, after the taxpayer receives a pre-clearance notification, the taxpayer will have 45 days from the date of that notification to complete the Offshore Voluntary Disclosure Letter and attachment (Forms 14437 and 14454). If the taxpayer chooses to bypass the pre-clearance process, the taxpayer must mail the Offshore Voluntary Disclosures Letter and attachment(s) (Forms 14457 and 14454) to the following address:

Internal Revenue Service
Criminal Investigation
ATTN:  Offshore Voluntary Disclosure Coordinator
Philadelphia Lead Development Center
1-D04-100
2970 Market Street
Philadelphia, PA 19104

The IRS will review the Offshore Voluntary Disclosures letter and attachment(s) and notify the taxpayer or representative by fax whether the voluntary disclosure has been preliminarily accepted or declined.

Complete Voluntary Disclosure Package

Once the voluntary disclosure has been preliminarily accepted, the taxpayer should send the full voluntary disclosure package to:

Internal Revenue Service
3651 S. I H 35 Stop 4301 AUSC
Austin, TX  78741
ATTN: 2014 Offshore Voluntary Disclosure Initiative