Legal Question in Tax Law in California

Hi,

I recently opened an account at goldmoney.com, which allows you to trade precious metals via an offshore account in Jersey. They don't provide any tax direction or related forms. How do I deal with the holding account and potential losses/gains from trading these precious metals via this account? I notice that the latest 1040 form asks if you have such offshore accounts, but I'm not sure what to do with it.

Thanks!


Asked on 2/07/11, 5:05 am

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

You are required to fill out your tax forms truthfully and sign them under penalty of perjury. This is the problem with offshore accounts, at least for those who would use them to evade taxes. Either tell the truth and pay your taxes, or lie and risk civil and criminal sanctions. Reporting an offshore account will draw the IRS auditors to you like sharks follow blood in the water.

Read more
Answered on 2/08/11, 6:40 pm


Related Questions & Answers

More Tax and Taxation Law questions and answers in California