The Hindu Business Line has reported that the Global Organization of People of Indian Origin (GOPIO) has requested that the Treasury Department review the Foreign Bank and Financial Accounts Report (FBAR) rules.
In its request, the GOPIO said the recent decision of the IRS in the 2011 Offshore Voluntary Disclosure Initiative (OVDI) to impose 20% penalty on undeclared taxes and a 25% FBAR penalty on the highest balance between 2003 and 2010 is causing inconvenience to Indian-Americans. The GOPIO asserted there was no deliberate intention by Indian-Americans to avoid taxes on the interest earned during the process of acquiring a home, apartment, supporting family or children’s education.
The organization urged the 2011 OVDI penalties of 20 per cent accuracy penalty on undeclared taxes and a 25 per cent FBAR penalty be substantially reduced for those who did not knowingly miss the filing deadlines. It also urged that the last date for voluntary disclosure to be extended to December 31, 2012.
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If you have questions regarding the IRS’ 2011 Offshore Voluntary Disclosure Initiative, please call a Former IRS Tax Attorney at Holtz, Slavett & Drabkin at (310) 550-6200.