Offshore Accounts Penalty Lowered to 5% for Certain Taxpayers
THE OFFSHORE PENALTY IS LOWERED TO 5% FOR CERTAIN TAXPAYERS
On June 18, 2014 the IRS announced changes to the Offshore Voluntary Disclosure Program providing streamlined procedures to accommodate a wider group of U.S. taxpayers who have unreported foreign financial accounts.For the first time, these procedures are available to certain U.S. taxpayers residing in the United States. To obtain the benefit of the streamline procedures the taxpayer must certify that previous failures to comply were due to non-willful conduct. For eligible U.S. taxpayers residing in the United States, the only penalty will be a miscellaneous offshore penalty equal to 5 percent of the foreign financial assets that gave rise to the tax compliance issue.