IRS Launches Amnesty Offshore InitiativeOffshore Account Update
Posted in on June 15, 2011
On February 8, 2011, the IRS launched an amnesty initiative for U.S. taxpayers with undisclosed offshore accounts. The 2011 Offshore Voluntary Disclosure Initiative (OVDI) is based on the previous disclosure program that ran through October of 2009.
The 2011 OVDI is based on the first amnesty program issued in 2009, but with two significant differences: a higher penalty structure and an eight-year look-back period. The general 2011 OVDI terms include:
- A 25 percent penalty on the taxpayers’ undisclosed offshore accounts with the highest aggregate account balance over an eight-year period, including 2003 through 2010.
- Participants must pay back taxes and interest for up to eight years as well as accuracy related and/or delinquency penalties.
- Participants must file all original and amended tax returns and include payments for taxes, interest and accuracy related penalties.
The attorneys at Thorn Law Group have experience in assisting U.S. taxpayers into compliance through voluntary disclosure. If you have an undisclosed offshore account contact Thorn Law Group today. Immediate action and experienced tax law representation is needed to voluntarily disclose your account in order to avoid criminal prosecution.