Thursday, June 19, 2014
As I have previously discussed, the IRS is going after and imposing huge penalties to account holders that have not disclosed their offshore accounts. As an additional tactic to stop individuals from shielding offshore accounts from taxes, the IRS is offering incentives for disclosure. These incentives are in the form of changes to the Offshore Voluntary Compliance Program, announced yesterday. One change is that streamlined procedures are now available to some U.S. resident taxpayers, but penalties apply. However, to use the streamlined procedures, the violations must not have been willful. The changes are expected to make disclosing past violations less costly.
See Deborah L. Jacobs, IRS Offers New Incentives to Disclose Foreign Bank Accounts, Forbes, June 18, 2014.