In June, the IRS announced new procedures to help U.S. citizens residing overseas, including dual citizens, catch up with tax filing obligations and assist with resolving some issues related to certain foreign retirement plans. While the new procedures become effective September 1, 2012, the IRS has yet to issue more details or specific factors used to determine compliance risk.
IRS Tax Attorneys
Category: IRS
The Internal Revenue Service’s new procedures to help U.S. citizens residing overseas, including dual citizens, catch up with tax filing obligations go into effect on September 1, 2012. If you are a U.S. taxpayer residing abroad and you haven’t been filing tax returns or Reports of Foreign Bank and Financial Accounts (FBARs), you may be able to come into compliance and avoid penalties or additional enforcement actions.
Switzerland’s Federal Administrative Court ruled that the tax office cannot release Credit Suisse bank data to the Internal Revenue Service (IRS). The IRS requested administrative assistance under the 1996 U.S.-Swiss Double Tax Treaty.
The Internal Revenue Service (IRS) is expanding its “Fresh Start” initiative to help the unemployed and struggling taxpayers. Under the program, new penalty relief options are available and eligibility for Installment Agreements has been expanded. The IRS previously expanded a streamlined Offer in Compromise (OIC) program.
The Treasury Department and the Internal Revenue Service (IRS) have issued proposed regulations for the next major phase of implementing the Foreign Account Tax Compliance Act (FATCA). Additionally, the United States, France, Germany, Italy, Spain and Britain issued a joint statement saying they wanted “to intensify their cooperation in combating international tax evasion.” The U.S. agreed to “reciprocate in collecting and exchanging” information about U.S. accounts held by residents of those countries.
The Internal Revenue Service has persuaded U.S. taxpayers to disclose hidden offshore bank accounts but then sometimes failed to cap the penalties, as promised, an agency watchdog said on Wednesday, accusing the IRS of “bait and switch.”
According to the SonntagsZeitung and World Radio Switzerland 11 Swiss banks have until Tuesday, December 20, 2011 to agree to deliver detailed information about their U.S. offshore banking businesses in order to avoid legal action.
For the second time in the past two years, a Swiss bank has handed over client records to the IRS. Rupert Neate reports in the Guardian that Credit Suisse, the second largest bank in Switzerland, has produced details on 130 Americans suspected of evading billions of dollars in taxes.
The 2011 Offshore Voluntary Disclosure Initiative (“OVDI”) is different in several ways from the 2009 Offshore Voluntary Disclosure Program (“OVDP”). The deadline to apply to the OVDI is August 31, 2011. Similar to the 2009 OVDP, the 2011 OVDI is intended to encourage taxpayers with unreported offshore accounts to come forward voluntarily with the primary benefits of (a) no criminal referral; and (b) a reduced penalty.
The IRS spokesman Frank Kieth recently said that the IRS would soon announced a second Offshore Voluntary Compliance Program for taxpayers who have unreported foreign bank accounts. Details of the new program should be released soon and we will post an update on this program as soon as details are disclosed.
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