IRS Announces New Disclosure Program for Offshore Accounts

February 18, 2011Articles The Legal Intelligencer

The Internal Revenue Service has announced a new initiative, called the 2011 Offshore Voluntary Disclosure Initiative, designed to encourage taxpayers with undisclosed offshore bank and investment accounts to make voluntary disclosure of those accounts and to bring themselves into compliance with U.S. tax laws. The structure of the 2011 initiative is similar to the 2009 Offshore Voluntary Disclosure Program but with a slightly higher penalty structure.

The IRS has announced that approximately 15,000 taxpayers made voluntary disclosures about their offshore accounts pursuant to the 2009 program. However, there are still a significant number of taxpayers who remain noncompliant with respect to offshore accounts.