The IRS has now extended the deadline from June 30, 2014 to August 4, 2014 for certain people to the 2012 OVDP
(IRS Medic - July 1, 2014) Wallingford, CT - Anthony E. Parent of Parent & Parent LLP explains that the IRS has made a decision today that the original due date of June 30, 2014 is extended to August 4, 2014, to aid individuals who has or had an undisclosed financial foreign accounts and like to seek protection under the good old 2012 streamlined rules.
This might looks like a lenient extension by the IRS, Parent is quick to explain that the truth is, it does not give enough time for those who need to disclose their foreign investments under the 2012 OVDP.
The IRS has released revised FAQs for the Offshore Voluntary Disclosure Program. Listed below is an excerpt from the official website: “Because the implementation of the Foreign Account Tax Compliance Act (FATCA) and the IRS and Department of Justice offshore enforcement efforts continue to raise the risk of detection of taxpayers with undisclosed foreign accounts and assets for the foreseeable future, it has been determined that 2012 OVDP should be modified and made available to taxpayers who wish to voluntarily disclose their offshore accounts and assets to avoid prosecution and limit their exposure to civil penalties but have not yet done so. Unlike the 2009 OVDP and the 2011 OVDI, the 2014 OVDP has no set deadline for taxpayers to apply. However, the terms of this program could change at any time”.
Beginning July 1, FACTA requires foreign banking institutions and those taxpayers to report overseas accounts and foreign assets to the IRS. So as to get protection under the Streamlined Program, they should be in the 2012 OVDP. That means acting by Aug 4. But the IRS can presume that any person who didn't report their offshore accounts as "willful" violators. While these changes appears like a attractive option, Parent clarifies that it can lead to further problems also.
The Streamlined procedure cuts down on the 27.5% penalty applicable to all OVDP participants to just 5% for those offshore account holders whose failure for non-reporting was not willful. While this is a great option for some, Parent quickly adds that opting out from the OVDP could benefit the majority of taxpayers with non-willful offshore accounts disclosure.
IRS Medic has got a number of experts with years of experience which include tax attorneys, accountants and also ex-IRS agents, offering long-term resolution for individuals and corporations to their tax issues. This OVDP issue is impacting a vast number of U.S. residents, Green Card holders and also expatriates. For any queries about overseas accounts, assets, or income, talk to experts at http://www.irsmedic.com now for a complete analysis of the case.