Off-shore Accounts Deadline for IRS Disclosure Approaching Fast
Posted on September 9th, 2009 by bunilaw
Time is running out for voluntary disclosures of off-shore accounts. The deadline is September 23, 2009.
It’s not unlawful to keep money, even a lot of money, in off-shore accounts. It is unlawful for US persons to fail to report income earned from all sources worldwide. Recent law also requires annual disclosure by US persons of substantial off-shore accounts.
If you have offshore accounts and have failed to report income, time is running out for you to make a voluntary disclosure. IRS Commissioner Douglass Shulman has made it clear that he wants Taxpayers to voluntarily disclose assets that have generated unreported income. Taxpayers who do that promptly can avoid criminal prosecution and greatly reduce penalties.
Commissioner Shulman has also warned that after September 23, field agents will be instructed “to fully develop these cases, pursuing both civil and criminal avenues, and consider all available penalties…” Taxpayers should be aware that assertion of all available penalties can easily reach twice the amount held in any offshore account. The Commissioner’s full statement dated March 26, 2009 an be found here: http://www.irs.gov/newsroom/article/0,,id=206014,00.html
Because initiating a voluntary disclosure involves direct communication with the Criminal Investigation division of IRS, taxpayers should engage a tax attorney to handle the process. Beware of mass-marketed operations promoting assistance with “tax amnesty.” The IRS voluntary disclosure program is not amnesty. While the IRS has centralized civil processing of offshore voluntary disclosures to help assure consistent penalty assessments, cases in the voluntary disclosure program are handled on a case by case basis. No taxpayer receives a guarantee against criminal prosecution.
A detailed IRS Q&A about the voluntary disclosure process can be found here: http://www.irs.gov/newsroom/article/0,,id=210027,00.html
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