Since 2009, the Offshore Voluntary Disclosure Program (OVDP) has made it possible for more than 45,000 taxpayers to declare offshore foreign accounts that they had failed to disclose in the past. The OVDP was designed to reduce penalties that would be associated with a failure to disclose a foreign account. Unfortunately, the program was very limited and many people who wanted to take advantage of it were unable to do so.
Read MoreOffshore Account UpdatePosted in on June 20, 2014
The Offshore Voluntary Disclosure Program (OVDP) has existed since 2009 to allow taxpayers to come forward and report offshore accounts they had previously failed to disclose to the Internal Revenue Service (IRS). Both individuals living abroad and individuals within the United States must report offshore accounts annually and can face penalties and fines if they fail to do so.
Read MoreArticles/NewsPosted in on June 18, 2014
In an effort to crack down on tax evasion, the Justice Department and Internal Revenue Service require U.S. persons with foreign bank accounts to complete Form TD F 90-22.1. This form is more commonly referred to as FBAR, short for Report of Foreign Bank and Financial Accounts. A failure to file can result in penalties of 50 percent of the high account balance.
Read MoreArticles/NewsPosted in on June 6, 2014
On May 28, 2014, a Federal District Court Jury in Florida awarded FBAR penalties amounting to $2,241,809 to the U.S. government for a man’s failure to disclose an offshore account that had a high balance of $1,691,054 during the years that the account was not in compliance with information reporting requirements. This FBAR penalty is equivalent to 150% of the highest account value in the undeclared foreign bank account.
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