*Loan,banking and credit>>>tax accounting

What is the benefit of opening an offshore bank account if IRS will tax you?

A common misconception is that money in a foreign bank account is hidden income. US Citizens and resident aliens must pay US income taxes on their worldwide income, regardless of whether their money is parked in a foreign or domestic bank account. Let's say you are working and living in Switzerland, and you have a Swiss checking and savings account for the convenience of conducting your finances while living abroad. Some individuals or businesses in the US will open foreign bank accounts because they want to invest or conduct business in a foreign country. For example, a US Citizen living in Switzerland might also have a Canadian bank account to handle the finances for a rental property she owns Toronto.

The trouble comes when individuals or businesses attempt to use a foreign bank account as a way to hide income from the IRS. Sooner or later these people will get caught because the IRS continues to develop very sophisticated methods of discovering hidden income. So if you are planning to do this you should have your defense team ready (including an attorney and tax professional).

So the benefit of opening an offshore account? It makes it easier for you to conduct business in that foreign country.

You might want to take a look at the following articles: Anti-Money Laundering and the Bank Secrecy Act (what the IRS is doing now to combat money-laundering), and Reporting Foreign Bank Accounts (how the US Treasury keeps track of money in overseas banks). Source(s): http://taxes.about.com/b/a/257297.htm...
http://taxes.about.com/od/preparingyourt...

It depends on which country. Some countries are more "friendly" towards foreign investors and don't bother to report your earnings to anyone. And/or they have a strict security so that they keep client information secret (like the Swiss).

So, if the bank doesn't report the money and you don't (illegal by the way but who is to know?), then you won't get taxed because it's not reported. So, those banks start getting a reputation and it goes on from there.

There are other things but they're generally not so ethical. There are also ethical reasons such as wanting the foreign interest rates, but that's easier to do with futures contracts.
The benefit can be protecting assets.