A couple days ago, the IRS extended their deadline for taxpayers with hidden offshore accounts to voluntarily come forward and report any account over $10k. This pushed back the deadline from September 23rd to October 15th, 2009. Remember, as a US taxpayer you need to file a tax return and report income whether working abroad, or if you own foreign equities or stock.
The IRS has been more active than ever recently taking on UBS and forcing them to hand over 4,450 names, and pay over $780 million in penalties and back taxes.
The IRS, more specifically, their Commissioner Doug Shulman, stated that those who come forward now and voluntarily report wrongdoing or unreported foreign accounts will be treated much better by avoiding criminal prosecution and higher penalties. Doug States in a letter on IRS.gov: “People who come in voluntarily will get a fair settlement.”
Realize, if you are one of these individuals that has not come forward even as the IRS extends this amnesty period, you could be prosecuted and experience jail time if you are caught so it is in your best interests to fess up and deal with the issue before it becomes a bigger problem. UBS is notifying their US account holders if their is a problem and the Swiss government is then expected to report their names to the IRS over the next few months. Appealing to the Swiss government is not really an option unless you want to admit to the IRS that you have unreported foreign accounts.
One thing to note, is that federal back taxes, penalties, and interest will still be waiting for no matter what tax evaders decide to do so so working with a tax resolution firm is a wise decision. Currently, each tax evader will be liable for six years of back taxes and interest as well as be liable for delinquency penalties.
This post was published on September 23, 2009