Trust Updates Archive

IRS offshore foreign bank trust account Trust Regulatory News fiduciary tax penalties IRS Extends Deadline for Disclosing Offshore Accounts, One Last Time

(September 21, 2009--Chicago, IL) -- Taxpayers now have until October 15, 2009, under an IRS voluntary disclosure program, to report offshore accounts. Voluntary disclosure stands to save taxpayers steep penalties, which in some cases can add up to more than the value of their accounts. The IRS stresses that there will be “no further extensions.”

Under the voluntary disclosure program, amended in March, certain taxpayers who disclosed their offshore accounts by September 23, 2009, could lower penalties and fines owed on unreported taxes (Click Here). Taxpayers will still be liable for any back taxes.

Taxpayers, who do not voluntarily disclose their hidden accounts by the new October deadline, face “much harsher civil penalties . . . and possible criminal prosecution,” according to an IRS release. See also TrustUpdates, August 20 (Click Here)

IRS officials say they are extending the deadline to give tax preparers and attorneys more time to interview and advise their growing backlog of taxpayers with hidden accounts, and to prepare the necessary paperwork to qualify for the special penalty provisions.

“By extending the deadline for a short period of time,” says the IRS, “[we are] providing relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it.”

For more on this topic, including filing requirements for pension funds with foreign bank or securities accounts, see the current issue of Trust Regulatory News. 

No statement in this issue is offered as or should be construed as legal opinion or advice or as an indicator of future performance.

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