Why it’s now harder to avoid penalties—and what you should do about it.
According to a recentForbes article by international tax attorney Virginia La Torre Jeker, the IRS has significantly stepped up enforcement around offshore income and foreign asset disclosures. With new tools, sharper data analytics, and stronger cooperation with foreign governments, the agency is making it increasingly difficult for taxpayers to hide—or even accidentally overlook—international financial activity.
What’s Changing
The IRS now leverages international information-sharing agreements and advanced AI-powered systems to flag discrepancies. This means that even unintentional mistakes can carry serious consequences. As the Forbes article notes, penalties for noncompliance aren’t just steep—they’re harder to contest or reverse.
Heightened Penalties and Their Impact
If you fail to properly report foreign income or assets—whether through Form 8938, FBAR, or others—you could face fines of tens of thousands of dollars. In more severe cases, criminal prosecution is on the table. These aren’t just financial setbacks; they can impact your reputation, credit, and ability to invest or travel internationally.
Why Compliance is More Crucial Than Ever
It’s no longer just a best practice—it’s a legal necessity. Being transparent with the IRS helps you avoid costly penalties, legal issues, and unnecessary stress. As the global financial landscape becomes more complex, understanding your obligations is critical.
Stay Ahead with Expert Guidance
At Ascent Tax, we specialize in guiding individuals and businesses through the ins and outs of international tax rules. If you’re unsure about your reporting requirements or want to make sure everything is in order, we’re here to help. Staying ahead of these evolving regulations can make all the difference.
Understanding these evolving regulations is key to ensuring peace of mind.