IRS Announces 2012 Offshore Voluntary Disclosure Program

9:33 pm Offshore Trusts

IRS logo 2 150x150 IRS Announces 2012 Offshore Voluntary Disclosure ProgramOn Monday, the IRS announced that it had collected $4.4 billion during its two previous offshore voluntary disclosure programs in 2009 and 2011, and that it is opening a third program in 2012.

The IRS said that the new program is very similar to the 2011 program, with a few differences for the 2012 program:

  • There is no deadline to apply;
  • The penalty on the highest aggregate account balance in a taxpayer’s foreign account increases from 25 percent to 27.5 percent;
  • Taxpayers with offshore assets of $75,000 or less in any calendar year covered by the program will qualify for a 12.5 percent penalty rate;
  • A narrowly defined list of taxpayers will qualify for a 5 percent penalty rate;
  • The IRS can increase the penalties or end the program at its discretion.

As in the 2011 program, participants must file all original and amended tax returns and include payment for back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties.

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