The IRS began an open-ended offshore voluntary disclosure program (OVDP) in January 2012 on the heels of strong interest in the 2011 and 2009 programs. The IRS may end the 2012 program at any time in the future, and is offering taxpayers with undisclosed income from offshore accounts another opportunity to get current with their tax returns.

The 2012 OVDP has a higher penalty rate (27.5%) than the previous programs (25% for 2011 and 20% for 2009 Program) but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk detection by the IRS and possible criminal prosecution, OVDP.

Global Accounting, Auditing & Tax Services, CPA, advises clients with their tax including undisclosed Foreign Bank Accounts.

Look-back period

The US authorities have indicated that once they receive disclosure from a foreign financial institution with respect to its US account holders, they will review all accounts back to August 1, 2008, including the closed ones. Therefore, closing an account in a foreign financial institution and transferring it to another one or to another country may not be a proper remedy to avoid FATCA or FBAR.

Global Accounting, Auditing & Tax Services, CPA, Attorney At Law, advises taxpayers with undisclosed Foreign Bank Accounts; OVDP, FBAR, FATCA and Foreign Trusts

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