Under the IRS amnesty program issued in March, taxpayers with hidden foreign financial accounts originally had until Sept. 23, 2009 to come forward.  As the incentive for coming forward, the taxpayers avoid criminal prosecution and face reduced penalties.

So far, more than 3,000 American taxpayers applied for the voluntary disclosure program.  Pursuant to requests from tax attorneys and practitioners, the IRS decided to extend the September 23rd deadline. By extending the deadline for a short period of time, until October 15, 2009, the IRS is providing relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative difficulties in meeting it.  The extension will allow taxpayers and their attorneys and representatives additional time to evaluate taxpayers’ situation and prepare the necessary paperwork to qualify for the special penalty provisions.

The IRS also announced that there will be no further extensions.

Former IRS Attorneys of Holtz, Slavett & Drabkin are available to answer your questions about the foreign bank accounts requirements, applicable penalties, and guide you through this voluntary disclosure program.  We can be reached at (310) 550-6200.

Author: Igor S. Drabkin, J.D., Former IRS Attorney.

Copyright (c) 2009 Igor S. Drabkin.  All Rights Reserved.