LATE BREAKING NEWS: The IRS has reinstated the Offshore Voluntary Disclosure Program for 2012 and beyond. They say the rules will be almost the same as the 2011 Program, but with some minor changes including the penalty of 27.5% increased from the 25% penalty in the 2011 program.  The IRS has yet to release the rules and regulations for this new program. Those should be released in the next few weeks. This is better than the regular disclosure program described below since it could reduce the penalties you have to pay.  Visit our blog here to learn the latest developments


If you missed the September 9 , 2011 Deadline for the IRS Voluntary Offshore Disclosure program it is best not to bury your head and not deal with the problem. There are alternatives available.  If you your are a US Citizen or permanent resident and still have not filed all past tax returns and filed the special foreign assets reporting forms (5471, TDF 90-22.1, 8865, 3520, etc) there are still steps you need to stop being subject to big monetary penalties or criminal prosecution. The Commissioner of the IRS has made it clear he does plan to actively pursuing all taxpayers who are not filing the required offshore asset reporting forms.

One avenue available is the IRS traditional Offshore Disclosure program program which has always been available and still is: READ ABOUT THE PROGRAM HERE.  You will probably need an attorney to represent you and to prepare  past  unfiled return tax returns and unfiled foreign asset reporting forms.  This procedure begins with the IRS Criminal Investigation Division who will most likely decide there is no criminal action required against you. After that, they will send your returns to the audit division for review and possible imposition of penalties.

Another avenue is to file your past tax returns and foreign asset reporting forms using regular filing procedures and hope the IRS does not discover you are filing the foreign asset reporting forms late. If you are discovered they may audit those returns and have threatened in impose severe penalties.  The possible penalties that may be imposed (often they are not all imposed or very few imposed) is set forth at the following link:  IRS PENALITES

Email or call us to to request a mini-consultation to  discuss your options and discuss with alternative might be best for you.  We strongly recommend you take action now before matters get worse.  Hundreds of taxpayers use our mini consultations each year to get answers to their questions and plan future tax strategies.  Request a Mini Consultation with Don Nelson, Attorney, CPA



Don D. Nelson, Attorney at Law, C.P.A.
35 Years Experience Assisting US Expatriates & International Taxation
Kauffman Nelson LLP- CPAs
Dana Point, California 92629-2808 USA

U.S. Phone (949) 481-4094   U.S. Fax (949)606-9627
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Skype Address:  dondnelson
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