Tax Relief Program Streamlines Reporting of Offshore Assets

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Tax mediation firm Tax Resolution Services, Co., addresses the new IRS instructions that make it easier for non-resident taxpayers to report offshore assets.

Tax Resolution Services

Tax Resolution Services, Co.®

Legislative efforts to curb tax evasion require all Americans abroad and dual citizens to report their earnings and assets to the IRS. In accordance with the 2010 Foreign Account Tax Compliance Act (FATCA), the IRS recently released instructions on September 1, 2012 that will make it easier for non-resident U.S. taxpayers to report their foreign assets. A recent blog post by Michael Rozbruch, CEO and founder of Tax Resolution Services, Co., addresses the requirements for this streamlined tax relief program and the dangers of non-compliance.

"New improvements to the requirements for American expatriates dealing with FATCA are wholly welcome," said Rozbruch. "So-called 'low risk' taxpayers could find significant advantages to participating in the program, such as the opportunity to file three years of delinquent tax returns and six years of Foreign Bank and Financial Account (FBAR) forms. There are some exceptions to these low risk benefits, however."

Rozbruch spells out the program's requirements in more detail. To qualify, one must be a tax-eligible citizen (this includes dual citizens) who has resided outside of the U.S. since January 2009, has not filed a return since that time, owes less than $1,500 to the U.S. government, and qualifies as "low risk" by expecting to owe less than $1,500 a year in future taxes.

"Anyone who fits into this category might find the new program easier and cheaper than the Offshore Voluntary Disclosure Program (OVDP)," said Rozbruch, "but need to keep in mind that submitting to it will permanently bar future participation in the OVDP. Non-disclosure, on the other hand, is a whole other serious matter."

Additionally, amended tax returns are considered high risk and are not allowed. Other high risk factors for an American abroad includes: claiming a refund; undeclared income in country of residence; current IRS audit or investigation; accounts or financial interests outside of country of residence; U.S. source income; suggestions of sophisticated tax planning or tax avoidance. "When it comes to offshore account disclosure, the IRS means business," Rozbruch added. "You do not want to mess with them with so much at stake."

Taxpayers with unreported offshore assets who may qualify for the new streamlined tax relief program may want to seek the assistance of a tax attorney or Certified Tax Resolution Specialist so they don’t navigate the paperwork and legalities alone. For more expert analysis of breaking tax news and other tax problem issues, visit Michael Rozbruch’s blog at or contact his company for a free consultation.

About Tax Resolution Services, Co. (TRS)
The tax attorneys, CPAs, EAs, and tax relief professionals at Tax Resolution Services, Co., have successfully settled thousands of cases over the past 14 years, and are committed to providing affordable, competitive solutions to businesses and individuals. Tax Resolution Services, Inc has experts who can assist consumers in reporting offshore assets. To find out how Tax Resolution Services, Co. can help, or to receive a free tax problem consultation, visit or call (888) 851-5894.

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Becky Stephens

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