The risk of criminal and/or substantial civil penalties grows greater as the Internal Revenue Service and Department Of Justice complete more bank-investigations and as, foreign banks continue to cooperate with US government officials.
New York, NY (PRWEB) January 23, 2012
On January 9, 2012 the Internal Revenue Service (IRS) reopened its Offshore Voluntary Disclosure Program (OVDP) to encourage U.S. taxpayers with undisclosed offshore accounts to come into compliance. The 2012 Amnesty Program was in response to continuing interest from U.S. taxpayers after the 2009 and 2011 programs ended, making this program the third in the past three years.
The 2012 OVDP is similar to the 2011 Offshore Voluntary Disclosure Initiative, in that it maintains a similar overall penalty structure with a few changes and provides taxpayers with undisclosed accounts recourse for disclosing their foreign accounts with set penalties. The general terms of the new amnesty program include:
1. A 27.5 percent penalty on the taxpayers' undisclosed offshore accounts with the highest aggregate account balance over an eight-year period.
2. Participants must pay back taxes and interest for up to eight years as well as accuracy related and/or delinquency penalties.
3. Participants must file all original and amended tax returns and include payments for taxes, interest and accuracy related penalties.
Kevin E. Thorn, Managing Partner of Thorn Law Group, a law firm that represents many taxpayers throughout the U.S. and around the world with undisclosed offshore accounts in the 2009, 2011 and now 2012 IRS Amnesty Program states, “With the renewal of a third Voluntary Disclosure Program it seems clear that the IRS is dedicated to providing taxpayers with opportunities to come forward, which is something that taxpayers with undisclosed offshore accounts should strongly consider this time around.” Mr. Thorn continues, “The risk of criminal and/or substantial civil penalties grows greater as the Internal Revenue Service and Department Of Justice complete more bank-investigations and as, foreign banks continue to cooperate with US government officials.”
Mr. Thorn emphasizes that the risk of the IRS discovering a taxpayer’s undisclosed offshore accounts increases with every passing day. The consequences for failure to comply with the proper disclosure requirements and filing requirements may lead to audits, severe financial penalties, and in some cases, criminal prosecution. The U.S. government is committed to bringing all U.S. taxpayers with undisclosed offshore accounts into compliance.
Mr. Thorn encourages all U.S. taxpayers to, “consult with a tax controversy attorney immediately in order to assess and minimize their civil and criminal exposure throughout these ongoing investigations and to take advantage of the new 2012 Offshore Voluntary Disclosure Program.”
For additional information on the news that is the subject of this release, contact Kevin E. Thorn, Managing Partner of Thorn Law Group at 201-842-7696 or visit us at http://www.newjersey-tax-lawyer.com/.
About Thorn Law Group, PLLC: Thorn Law Group, PLLC is a law firm dedicated to helping clients resolve complicated tax, criminal tax, and international tax problems.
Kevin E. Thorn
Managing Partner Thorn Law Group, PLLC