Tax Law Alert: IRS Announces Third Offshore Voluntary Disclosure Program Related to Foreign Bank Account Reporting (FBAR)
Following the success of the 2009 offshore voluntary disclosure program that ended on October 15, 2009 and of the 2011 offshore voluntary disclosure initiative that ended on September 9, 2011, the IRS has announced a third offshore voluntary disclosure program related to foreign bank account reporting (TD F 90-22.1, commonly referred to as the "FBAR"). The new program generally will be similar to the 2011 initiative. However, the IRS increased the one-time penalty to up to 27.5 percent of the highest account balance since 2003 (the 2011 initiative had a penalty of up to 25 percent). The penalty is reduced to 12.5 percent or 5 percent in certain situations, which are the same as those described in the 2011 initiative. Although there is no stated deadline for participating in the new program, the IRS has warned that the terms of the program can change at any time.
For our previous alert discussing the 2011 initiative and related issues, click here. For IRS guidance on the 2011 initiative in the form of Frequently Asked Questions that generally apply to the new program, click here. For the IRS news release about the new program, click here.
Please contact one of the International Tax or International Estate Planning attorneys listed below if you have questions:
Eric Kodesch at (503) 294-9684 or firstname.lastname@example.org
Kirstin Humann Thompson at (206) 386-7611 or email@example.com
Kristina Ash at (206) 386-7696 or firstname.lastname@example.org
Emily Karr at (503) 294-9185 or email@example.com
Carl Lewis at (206) 386-7688 or firstname.lastname@example.org
Kevin Pearson at (503) 294-9622 or email@example.com
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