An offshore bank account and IRS suggests to assess the position of an overseas bank account holder putting his financial assets outside the US towards the Internal Revenue Service (IRS) position and the implication on tax issues.
An offshore bank account consists for the IRS not of a problem assuming the balance of this account is below a threshold of 10,000 USD and the US tax authorities had been informed through a formal declaration disclosing the existence of all overseas accounts.
An overseas bank account for the IRS being considered the same as an offshore bank account either located in a tax haven or not put any US citizen under the obligation to disclose any foreign asset wherever the bank account is located if it’s outside the USA.
An offshore account for the IRS is quite difficult to hide given the fact that all banks in all countries have the obligation to submit to the US authorities a form indicating every detail about any US citizen holding an account under the Foreign Account Tax Compliance Act (FATCA).
An offshore bank account disclosure to IRS is suggest far in advance ahead of potential US tax authorities investigation, also it is worth to know that assets that have to be declared cover not only wealth in form of cash but also:
Foreign bank accounts.
Overseas participation in foreign investments.
Pension funds.