Wednesday, June 25, 2014

IRS Releases New Rules on Taxpayer Voluntary Compliance Programs

On June 18, 2014, the IRS announced two major changes to its Offshore Voluntary Compliance Programs, which offer taxpayers with undisclosed income from offshore accounts an opportunity to correct their tax reporting. A Streamlined Procedure is now offered to taxpayers residing inside and outside of the U.S. if their failure to report was non-willful. The Offshore Voluntary Disclosure penalty on accounts in foreign banks and financial institutions under criminal investigation is now almost double the usual penalty.