FBAR Amnesty (Again)
The IRS has recently announced a second period of amnesty for undisclosed foreign bank and financial accounts (FBAR). In order to disincentivize “holding out” the IRS has upped the potential penalties to 25% from 20% on the highest aggregate account balance between 2003 and 2010. Taxpayers must also file amended returns declaring all foreign income and pay the related taxes, penalties, and interest. The deadline for entering the amnesty program is August 31, 2011.
In exchange the IRS is promising not to pursue criminal charges. In addition to criminal charges, the penalties can be as high as 50% of the highest aggregate account balance as well as declaring all foreign income and paying the related taxes, etc.
The IRS has made it clear they are actively pursuing these perceived tax “loopholes” in an aggressive fashion. If you have undisclosed foreign bank accounts you need to know your rights and options. Please call our office immediately to speak with your trusted LMGW advisor.
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