The IRS is serious about collecting unpaid taxes on foreign bank accounts. The new Voluntary Disclosure Program may be the last chance for taxpayers with offshore assets and income to come clean. Failure to comply with the program will result in stiffer penalties.
Taxpayers only have until August 31, 2011, to disclose offshore bank accounts and pay back taxes, interest and penalties based on the past eight years. Penalties are up to 25 percent of the highest annual amount in the overseas account from 2003 through 2010.
DGC has significant experience and expertise when it comes to reporting international activity. We 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
Time is of the essence! The window will soon close on the opportunity to reduce penalties through the Voluntary Disclosure Program.