If you entered the 2011 IRS Voluntary Offshore Disclosure Program and are representing yourself, you may need
proffessional advice as the process proceeds or wish to have an Attorney/CPA represent you before the agent appointed
to handle your disclosure. We have assisted or advised more than 100 taxpayers in connection with the IRS Voluntary
Offshore Disclosure Programs. We know how to secure you the best possible outcome from the IRS. Request a mini consultation to discuss your individual situation, plan your strategy and answer your questions. WASHINGTON — The Internal
Revenue Service announced today a special voluntary disclosure initiative designed to bring offshore money back into
the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The
new voluntary disclosure initiative will be available through the New Extended Deadline of September 9, 2011 “As we continue
to amass more information and pursue more people internationally, the risk to individuals hiding assets offshore is increasing,”
said IRS Commissioner Doug Shulman. “This new effort gives those hiding money in foreign accounts a tough, fair way
to resolve their tax problems once and for all. And it gives people a chance to come in before we find them.” The IRS decision to open a second
special disclosure initiative follows continuing interest from taxpayers with foreign accounts. The first special voluntary
disclosure program closed with 15,000 voluntary disclosures on Oct. 15, 2009. Since that time, more than 3,000 taxpayers have
come forward to the IRS with bank accounts from around the world. These taxpayers will also be eligible to take advantage
of the special provisions of the new initiative. “As I’ve said all along, the goal is to get people back into the U.S. tax system,” Shulman said.
“Combating international tax evasion is a top priority for the IRS. We have additional cases and banks under review.
The situation will just get worse in the months ahead for those hiding assets and income offshore. This new disclosure initiative
is the last, best chance for people to get back into the system.” The new initiative announced today – called the 2011 Offshore Voluntary
Disclosure Initiative (OVDI) -- includes several changes from the 2009 Offshore Voluntary Disclosure Program (OVDP). The overall
penalty structure for 2011 is higher, meaning that people who did not come in through the 2009 voluntary disclosure program
will not be rewarded for waiting. However, the 2011 initiative does add new features. For the 2011 initiative, there is a new penalty framework that requires individuals
to pay a penalty of 25 percent of the amount in the foreign bank accounts in the year with the highest aggregate account balance
covering the 2003 to 2010 time period. Some taxpayers will be eligible for 5 or 12.5 percent penalties. Participants also
must pay back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties. Taxpayers participating in the
new initiative must file all original and amended tax returns and include payment for taxes, interest and accuracy-related
penalties by the Aug. 31 deadline. The IRS
is also making other modifications to the 2011 disclosure initiative. Participants face a 25 percent penalty, but taxpayers in limited situations can
qualify for a 5 percent penalty. The IRS
also created a new penalty category of 12.5 percent for treating smaller offshore accounts. People whose offshore accounts
or assets did not surpass $75,000 in any calendar year covered by the 2011 initiative will qualify for this lower rate. The 2011 initiative offers clear
benefits to encourage taxpayers to come in now rather than risk IRS detection. Taxpayers hiding assets offshore who do not
come forward will face far higher penalty scenarios as well as the possibility of criminal prosecution. “This is a fair offer for people with offshore
accounts who want to get right with the nation’s taxpayers,” Shulman said. “This initiative offers them
the chance to get certainty about how their case will be handled. Just as importantly, those who truly come in voluntarily
can avoid criminal prosecution as well.” The IRS is handling processing of the voluntary disclosures in centralized units to more efficiently process the
applications. The IRS
has launched a new section on www.IRS.gov that includes the full terms and conditions on the 2011 Offshore Voluntary
Disclosure Initiative, including an extensive set of questions and answers to help taxpayers and tax professionals. The web
site also includes details on how people can make a voluntary disclosure. In the first voluntary disclosure program in 2009, taxpayers faced up to a 20 percent
penalty covering up to a six-year period. Taxpayers came forward with about 15,000 voluntary disclosures in that effort covering
banks in more than 60 countries. Shulman
said IRS efforts in the international arena will only increase as time goes on. “Tax secrecy continues to erode,” Shulman said. “We
are not letting up on international tax issues, and more is in the works. For those hiding cash or assets offshore, the time
to come in is now. The risk of being caught will only increase.” We offer our clients the confidentiality of "Attorney-Client Privilege" if
you wish to discuss the consequences of entering this program and your personal strategies. We counseled numerous
clients concerning the First Offshore Disclosure Program and represent clients in that program. Please contact us if
you need our help. The procedures for entering the Program or securing a 90 day extension of time to enter the Program
are complex. Read FAQs 23-25.1 for the exact steps required or call us so we can guide you through this process. More about the 2011 Offshore Disclosure Initiative 2011 Offshore Disclosure Frequently Asked Questions
Read the latest news on the 2011 Voluntary Disclosure Program
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