Note: As of August 29 U.S. taxpayers with overseas bank accounts have until Sept. 9 to apply to an IRS amnesty program due to Hurricane Irene. The original deadline was August 31.
IRS Amnesty Program’s Deadline is Approaching Fast!
Americans with offshore bank accounts hear me now: The second IRS amnesty program (rumored to be the last) is set to expire on September 9, 2011. Foreign Bank Account Report (FBAR) compliance is a serious matter, and global banks are getting more pressure than ever to disclose U.S. accounts, so this is the time to get these matters settled.
Government investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad. They have offered an amnesty deadline to allow consumers to come forward sans fear and anxiety and settle their tax troubles once and for all. The August 31 deadline is not only to file the initial application to the program but also to submit the complete civil package that includes the amended income tax returns and delinquent FBARs.
The IRS has scored recent successes in pressuring foreign banks to disclose information about their account holders, with the view to capturing those lost tax revenues, plus hefty penalties amounting to $100,000, or half the value of the account, per year, for willful failure to file.
Consumers can’t afford to not take advantage of the second amnesty program offered by the IRS. Having expert tax professionals on your side is a small investment that can make a big difference financially, emotionally and legally.
To learn more about FBAR and Offshore Account Disclosure, follow these resources: