If you have not filed required FBARs, 5471, 3520 and other foreign asset reporting forms with the IRS for past years the IRS recommends you enter the 2012 Offshore Voluntary Disclosure Program. However, in many instances that 27.5% penalty seems excessive for the value of the assets involved. The IRS says at any time you can opt out of the program which means your past filings or amendments will be sent immediately to audit who can assess a smaller amount of penalty or a greater amount of penalties than provided for in the Offshore Disclosure Program.
There is no written and very little reported information on what happens to those taxpayers who Opt Out of the Offshore Disclosure Program. BNA, a leading tax publisher for tax professionals, has in the following article reported the current status of Opting Out. READ THE ARTICLE HERE
If you need to discuss your alternatives and the possible consequences of filing past year foreign assets reporting forms and the related income we can help. Email us at ddnelson@gmail.com
