By Christopher Hussey, CPA and Laurie J. Austin, CPA, MST
The IRS is serious about collecting unpaid taxes on foreign bank accounts. Due to the success of the first two voluntary disclosure programs the IRS has announced that it will reopen the program which closed in the fall of 2011.
Unlike the previous two offerings, this current program will remain open indefinitely. Taxpayers can use this program to disclose offshore bank accounts, pay back taxes, interest, and penalties based on the previous eight years. The program is almost identical to the 2011 program except that the highest penalty rate has been raised from 25% to 27.5%.
Although this program has no identified end date, there is no guarantee that the details of the program will remain unchanged and therefore taxpayers are encouraged to come forward before the IRS gets to them.
DGC has significant experience and expertise when it comes to reporting international activity. We can work with taxpayers and their attorneys to comply with the Voluntary Disclosure Program in the following ways:
- Foreign Bank Account Reporting
- Reporting for U.S. shareholders/partners of foreign corporations and partnerships
- Passive Foreign Investment Company analysis and reporting
- Preparation of amended federal and state income tax returns
- Calculate penalties
For more information about the voluntary disclosure program, contact Laura Barooshian at lbarooshian@dgccpa.com or 781-937-5332 or Laurie Austin at laustin@dgccpa.com or 781-937-5329.