{"id":10560,"date":"2014-06-19T09:07:58","date_gmt":"2014-06-19T14:07:58","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=10560"},"modified":"2014-06-19T09:07:58","modified_gmt":"2014-06-19T14:07:58","slug":"irs-makes-changes-to-offshore-programs-revisions-ease-burden-and-help-more-taxpayers-come-into-compliance","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/irs-makes-changes-to-offshore-programs-revisions-ease-burden-and-help-more-taxpayers-come-into-compliance\/","title":{"rendered":"IRS Makes Changes to Offshore Programs; Revisions Ease Burden and Help More Taxpayers Come into Compliance"},"content":{"rendered":"

\"\"<\/a><\/p>\n

This just in from my friend Steve Cantor who has an international law and taxation firm back in Miami.\u00a0 His contact information is below for anyone who wishes to contact their offices for assistance.<\/p>\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/strong><\/em><\/p>\n

Important Announcement<\/strong><\/p>\n

June 19, 2014<\/em><\/p>\n

IRS Makes Changes to Offshore Programs; Revisions Ease Burden\u00a0and\u00a0Help More Taxpayers Come into Compliance<\/strong><\/p>\n

<\/em><\/p>\n

Dear Clients and Friends:<\/p>\n

We share with you the announcement made by the IRS regarding important changes to the Offshore Voluntary Compliance Programs and Streamlined Procedures. This will provide new options to help both taxpayers residing overseas and those residing in the United States.<\/p>\n

Please feel free to contact us should we be of service in assisting you determine how this may impact upon you.<\/p>\n

Best regards,<\/p>\n

Cantor & Webb <\/strong><\/p>\n

IR-2014-73, June 18, 2014<\/p>\n

WASHINGTON \u2013 The Internal Revenue Service announced today major changes in its offshore voluntary compliance programs, providing new options to help both taxpayers residing overseas and those residing in the United States. The changes are anticipated to provide thousands of people a new avenue to come into compliance with their U.S. tax obligations.<\/strong><\/p>\n

The changes include an expansion of the streamlined filing compliance procedures announced in 2012 and important modifications to the 2012 Offshore Voluntary Disclosure Program (OVDP). The expanded streamlined procedures are intended for U.S. taxpayers whose failure to disclose their offshore assets was non-willful.<\/p>\n

\u201cThis opens a new pathway for people with offshore assets to come into tax compliance,\u201d said IRS Commissioner John Koskinen. \u201cThe new versions of our offshore programs reflect a carefully balanced approach to ensure everyone pays their fair share of taxes owed. Through the changes we are announcing today, we provide additional flexibility in key respects while maintaining the central components of our voluntary programs.\u201d<\/p>\n

Balanced against the modified programs is the government\u2019s ongoing effort to combat the misuse of offshore assets. The IRS, working closely with the U.S. Department of Justice, continues to investigate foreign financial institutions that may have assisted U.S. taxpayers in avoiding their tax filing and payment obligations. In addition, on July 1, the new information reporting regime resulting from the Foreign Account Tax Compliance Act (FATCA) will go into effect. Thousands of foreign financial institutions will begin to report to the IRS the foreign accounts held by U.S. persons.<\/p>\n

The current Offshore Voluntary Disclosure Program was launched in 2012 and is the successor to prior voluntary programs offered in 2011 and 2009. Since the launch of the first program, more than 45,000 taxpayers have come into compliance voluntarily, paying about $6.5 billion in taxes, interest and penalties.
\nThe expansion of the streamlined procedures and modifications to OVDP reflect the thoughtful input of the tax community given the growing awareness among U.S. taxpayers of their offshore tax obligations.<\/p>\n

\u201cThrough our enforcement efforts and implementation of FATCA, taxpayers are more aware of their obligations, and we believe want to come into compliance,\u201d Koskinen said. \u201cIn this rapidly changing environment, we listened to feedback from the tax community as well as the National Taxpayer Advocate about our voluntary programs. We have made important adjustments to provide opportunities for all U.S. taxpayers to come in, including those who are not willfully hiding assets.\u201d<\/p>\n

Streamlined Procedures Expanded<\/strong><\/em><\/p>\n

The changes announced today make key expansions in the streamlined procedures to accommodate a wider group of U.S. taxpayers who have unreported foreign financial accounts.<\/strong><\/p>\n

The original streamlined procedures announced in 2012 were available only to non-resident, non-filers. Taxpayer submissions were subject to different degrees of review based on the amount of the tax due and the taxpayer\u2019s response to a \u201crisk\u201d questionnaire.<\/p>\n

The expanded streamlined procedures are available to a wider population of U.S. taxpayers living outside the country and, for the first time, to certain U.S. taxpayers residing in the United States. The changes include:<\/p>\n