IRS to End Offshore Voluntary Compliance Program September 28, 2018

On September 4, 2018, the Internal Revenue Service issued a reminder that taxpayers with undisclosed foreign financial assets have until September 28, 2018, to file a disclosure under the Offshore Voluntary Disclosure Program (OVDP).   The OVDP launched in 2009 as a means for taxpayers to voluntarily past noncompliance related to unreported foreign income or foreign financial assets and failure to file foreign information returns, such as the FBAR.  Since 2009, more than 56,000 taxpayers have...

IRS Announces OVDP Success

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 Compl...

IRS Ready For 2015 FATCA Enforcement and U.S. Account Disclosures By Foreign Banks

The Internal Revenue Service (IRS) is prepared to receive the account disclosures of information of U.S. taxpayers’ offshore accounts from thousands of participating foreign financial institutions in 2015, according to recent comments by IRS Commissioner John Koskinen.  In compliance with the Foreign Account Tax Compliance Act (FATCA), some 120,000 foreign banks and financial institutions are expected to have begun disclosing the account information of U.S. taxpayers to the IRS starting January...

IRS Focus On Offshore Tax Non-Compliance

The Internal Revenue Service (IRS) has been ineffective in its collection of unpaid taxes from international U.S. taxpayers, according to a report published on September 30 by the Treasury Inspector General for Tax Administration (TIGTA). The report is the result of an audit conducted by TIGTA into the current effectiveness of the IRS’s efforts at stopping offshore tax non-compliance, and it found several significant procedural and management flaws in IRS procedure. In the report, TIGTA points t...

FATCA Causes Problems For U.S. Holders of Accounts in India

Increasing implementation of the Foreign Account Tax Compliance Act (FATCA) will soon cause problems for U.S. holders of unreported bank accounts in India, according to many tax analysts. FATCA is a recently-implemented U.S. law that requires foreign banks (under the threat of a 30% withholding tax on U.S.-source payments) to disclose the information of U.S. account holders to the IRS for use in investigations of offshore tax evasion. It has been reported that many U.S. citizens have been moving...
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