Non Resident Indians who live in United States with roots in India often are ignorant about reporting foreign bank account, inheritance, property transactions and income to US Internal revenue Service. People often assume that it is not possible for the IRS to find out….however, IRS is surely cracking down these transactions and the story reported below could be just a beginning…
Bloomberg reports: “The Justice Department is conducting a criminal investigation of HSBC Holdings PLC clients who may have failed to disclose accounts in India or Singapore to the Internal Revenue Service, according to three people familiar with the matter.
One client got a letter from the Justice Department in late June that said prosecutors had “reason to believe that you had an interest in a financial account in India that was not reported to the IRS on either a tax return” or a Treasury Department report disclosing foreign accounts, according to copies read to Bloomberg News by lawyers who have seen the letters.
The letters went to U.S. residents who have ties to India, including people who inherited money from relatives or maintained assets there after leaving the country, according to three lawyers who read them and asked not to be identified. Some letters referred to undisclosed bank accounts in Singapore, two of the lawyers said. “