Offshore Blunder by Megaupload Founder, How to Avoid.

Headlines on 01/20/2012 Megaupload founder's homes raided, $5M in luxury cars seized

According to the news report on MSN.com, millions of dollars were seized.

WHAT?

Who is their CPA?

Oh, I know what happen. The CPA told them not to keep millions of dollars where it could be taken by the authorities once they found out there was a problem. But they didn't listen, that must be what happen!

So to make it really clear, for tax clients, followers and readers of this blog. IT is NOT against the law to have an offshore bank account. However, it IS against the law not to tell the IRS about the account.

If the thought passes through your mind, that the Feds might seize your property, regardless of how much you think you know, you would be safer, if you placed large sums of money in an account that not even you can access within a moment's notice, much less the Feds.

Ok, this is what the article said: "Although the company is based in Hong Kong and Dotcom lives in New Zealand, some of the alleged pirated content was hosted on leased servers in Virginia, and that was gave U.S. prosecutors jurisdiction to act."

People, listen. If your company is an offshore adventure, then make it 100% offshore. Any parts of your business on U.S. soil is a no, no, if you are attempting to be an "offshore company" because of legal questions.

Offshore means, your business is NOT in the U.S., unless you have an office here, and depending on the type of business (web site) you own, you may want to be careful about your visits to the US until you are sure where the Feds stand on certain issues, which pertain to you.

Don't ever get so caught up in a tunnel of your own thoughts that you begin to believe that the Feds won't jack you up if "they" feel that they have legal cause to do so.

Don't get me wrong. Remember what I wrote. It is NOT illegal to have an offshore bank account, it's illegal if you dont't share this information with the IRS. (Schedule B) Read between the lines. Seek out a good and experienced attorney, and for heaven's sake, listen to what your attorney tells you.