We would like to remind everyone that the IRS Voluntary Disclosure Program for offshore bank accounts and Foreign Bank Account Report (“FBAR”) is going to expire next week, on September 23, 2009. U.S. taxpayers (individuals and entities) who have foreign financial accounts are required to file Form 90-22.1 with the IRS every June 30th. Those who fail to file an FBAR may be subject to criminal prosecution and jail term of up to 5 years, as well as a criminal fine of $250,000. In addition, a willful failure to file the FBAR can result in a civil penalty of the greater of $100,000 or 50% of the balance in the account. This penalty can be imposed on an annual basis, and can exceed the balance in the account.
Beginning in March of this year, the IRS has been promoting its offshore voluntary disclosure program. Under the terms of this program, the IRS has agreed not to bring criminal prosecutions of owners of foreign bank accounts if they turn themselves in to the IRS Criminal Investigation Division no later than September 23rd. In addition, those who come forward will have penalties limited. Our firm has been assisting many clients with offshore bank accounts, but the time for voluntary disclosure under this program is expiring. If you have any questions about the program and its terms, please feel free to call Former IRS Attorneys of Holtz, Slavett & Drabkin at 310-550-6200.
Copyright (c) 2009 Igor S. Drabkin. All Rights Reserved.