If you intended to take advantage of the second special voluntary opportunity to reveal undisclosed offshore accounts and income to the Internal Revenue Service, but are unable to meet the original August 31, 2011 deadline as a result of Hurricane Irene, you now have until September 9, 2011 to submit your paperwork and take advantage of the 2011 Offshore Voluntary Disclosure Initiative (OVDI).
Though you will still face penalties on any back taxes you may owe as a result of your voluntary disclosure, you will avoid possible penalties at a higher rate, along with potential criminal charges, if the IRS discovers your hidden overseas assets before you reveal them.
In the past few years, the IRS has successfully targeted global bankers and financial institutions to discover many hidden assets of U.S. taxpayers. During the next few years, additional new foreign account reporting requirements will be implemented, which will make it even more difficult to hide assets offshore.
If you do have undeclared bank accounts or other assets overseas, the current OVDI initiative may be your last best chance to avoid the most harsh penalties should the IRS find them before you disclose them. More than 15,000 people have taken advantage of previous offshore disclosure initiatives, so you would not be alone in your decision to do the right thing now rather than potentially facing the harshest penalties and criminal charges later.
If you you need assistance submitting your Offshore Voluntary Disclosures Letter by the September 9 deadline, the Law Offices of Connie Yi, P.C. can help you. Connie Yi is both a California attorney and a licensed Certified Public Accountant who specializes in the legal implications of personal and business issues related to finances and taxes.
For a free consultation about your possible need to quickly take advantage of the extended deadline for participating in the current OVDI, please contact us immediately – before it is too late.
(Note: the IRS.gov website went offline while we wrote this article (perhaps due to the overwhelming response to the OVDI deadline extension?), so we hope the links above are working when you read this.)