The IRS has announced changes in its offshore voluntary compliance program. (IRS News Release IR-2014-73, 6/18/14) The changes are designed to encourage U.S. citizens living abroad to confess about tax transgressions involving foreign accounts. Besides streamlining procedures, the modifications include:
• Requiring additional information from taxpayers applying to the program
• Eliminating the existing reduced penalty percentage for certain non-willful taxpayers in light of streamlined procedures
• Requiring taxpayers to submit all account statements and pay the offshore penalty at the time of application
• Enabling taxpayers to submit voluminous records electronically rather than using paper
• Increasing the offshore penalty percentage from 27.5% to 50% when the financial institution is under investigation.
- Small Business Tax Deduction Strategies No matches