Today, the Internal Revenue Service (IRS) is drawing attention to the success of its efforts in bringing taxpayers with unreported offshore accounts back into tax compliance. Since 2009, around 100,000 U.S. taxpayers have utilized the IRS Offshore Voluntary Disclosure Program (OVDP) and its streamlined counterpart to report previously undisclosed foreign accounts, allowing the IRS to collect an approximate $10 billion in taxes, interest and penalties. The passing of the Foreign Account Tax Compliance Act (FATCA) in 2010 has enacted a new era in international tax regulation, as the U.S. government has worked extensively with foreign governments and banks to detect offshore funds hidden by U.S. taxpayers. The OVDP has allowed U.S. taxpayers the chance to come forward voluntarily and avoid prosecution and substantial penalties. The streamlined filing procedures are an alternative method of voluntary disclosure, in which taxpayers are able to pay significantly less in penalties, if they can certify that their failure to report an offshore account was non-willful in nature.
Determining how to properly disclose foreign accounts is a complicated matter, and consulting with an experienced tax attorney is highly recommended. Call Daniel Rosefelt & Associates, LLC, Attorney & CPA today at 301.656.4424 to discuss your legal options.