The IRS issued a news release urging taxpayers with undisclosed offshore financial accounts or assets to strongly consider coming into compliance under existing voluntary disclosure options.
The Offshore Voluntary Disclosure Program (OVDP), a revised program with streamlined procedures, as well as other options for taxpayers failing to file foreign returns, has been developed to bring taxpayers into compliance while limiting exposure to all potential penalties. These programs can provide significant benefits to taxpayers as opposed to the IRS finding this information first.
With the implementation of the Foreign Account Tax Compliance Act (FATCA), the IRS has agreements with over 100 countries to exchange information of citizens with accounts in these countries. What was once thought to be information from a few countries has now turned into worldwide transparency for the U.S. Furthermore, the Department of Justice has entered into agreements with individual foreign banks to turn over additional accountholder information in exchange for relief from prosecution.
“The groundbreaking effort around automatic reporting of foreign accounts has given us a much stronger hand in fighting tax evasion,” said IRS Commissioner John Koskinen. “People with undisclosed foreign accounts should carefully consider their options and use available avenues, including the offshore program and streamlined procedures, to come back into full compliance with their tax obligations.”
alliantgroup has represented numerous clients in these areas and learned that navigating these options is unique to each taxpayer. Decisions should be carefully considered with counsel.
alliantNational, alliantgroup’s national practice, provides subject matter expertise on complex and emerging federal, state and international tax issues as well as legislative and regulatory affairs to help businesses receive timely and precise guidance on all their tax matters. Contact us today to learn how your business can benefit from alliantgroup’s tax consulting services.