When you hear about offshore accounts in the media, it might involve a celebrity hiding their money overseas for tax evasion purposes. However, there’s nothing illegal about having an offshore account. Anyone can have an offshore account, even ordinary people in Oklahoma. If you aren’t trying to hide your money from the IRS, storing your money overseas is perfectly legal.
How do you set up an offshore account?
Anyone can have a legal offshore account; you could set up an account today without breaking the law. Many people set up offshore accounts because they can earn money without paying taxes in that country. However, that doesn’t mean that their income is 100% tax free. Foreign banks are still required to report that money to the IRS, and if you try to hide that information from the government, you might be accused of committing a white-collar crime.
Overall, if you claim the money on your taxes, offshore accounts are legal. In fact, many people in other countries have offshore accounts in the United States. Storing your money overseas can offer stability if you live in a poor or war-torn area. Additionally, some people invest their money overseas so that they can enjoy a higher standard living in foreign countries than they would in the United States.
If you want to sign up for a foreign bank account, you typically only need a few hundred dollars to get started. Keep in mind that you’ll have to comply with a foreign country’s financial laws and terms.
What should you do if you’re accused of tax evasion?
You may want to hire an attorney if you’re accused of tax evasion or another white-collar crime. Your attorney may be able to help you prove that you weren’t trying to hide money from the IRS by using an offshore account.