Tags: IRS | taxpayers | offshore | accounts

IRS Eases Rules for Taxpayers Wanting to Disclose Offshore Cash

Wednesday, 18 June 2014 11:50 AM

The Internal Revenue Service is making it easier for U.S. taxpayers to disclose some offshore accounts.

The changes open the simplified version of the IRS voluntary disclosure program to people with larger tax debts, eliminate a questionnaire and require taxpayers to say that any violations weren’t willful.

The tax agency announced the details of the plan today in Washington. Typically, taxpayers who come forward must pay some back taxes and penalties.

For the IRS, the voluntary disclosure program has provided a way to get information about taxpayers and promote future compliance.

“This opens a new pathway for people with offshore assets to come into tax compliance,” IRS Commissioner John Koskinen said in a statement. “We provide additional flexibility in key respects while maintaining the central components of our voluntary programs.”

Unlike most countries, the U.S. taxes its citizens on income they earn around the world, creating a burden for many expatriates and people who have birthright citizenship but little other connection to the country.

The announcement comes before the July 1 effective date of the Foreign Account Tax Compliance Act, which requires banks outside the U.S. to report accounts held by U.S. taxpayers.

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The Internal Revenue Service is making it easier for U.S. taxpayers to disclose some offshore accounts.
IRS, taxpayers, offshore, accounts
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2014-50-18
Wednesday, 18 June 2014 11:50 AM
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