The massive Panama Papers leak has attracted attention to the use of offshore business entities and implicated 2,400 U.S.-based clients of Mossack Fonseca. U.S. taxpayers with offshore assets should be wary of increased scrutiny by federal regulators, which may lead to criminal cases brought by U.S. Department of Justice.
In this update we detail the civil and criminal liabilities for failing to report offshore income and the current prosecutorial landscape in connection with the release of the Panama Papers.