IRS Amnesty Program-Aiding Tax Defaulters Meet US Regulations
Two major events, the continuous technological growth and globalization has today paved the way for
enterprises to expand their business worldwide. This has also given individuals opportunities to be
part offshore project teams, mobile workforce jet setting from location to another with the project
assignment or multinational workforce settled in foreign countries as part of the work commitments.
However, keeping quite about the foreign accounts and income while filing your taxes is a huge
mistake. With large corporates expanding their business across nations, the IRS is pushing both
individuals and corporates to report world wide income.
Tax payers very often forget to file in their taxes on time, attempt to evade tax payments or even
overstate their expanses and deductions to gain higher tax refunds. Irrespective of being a US national
living outside the US or part of the Green card holder community or even a foreign national working in
the United States and paying his taxes to the US government, the IRS regulations demands for
disclosure of global accounts and foreign bank accounts. Under the US tax preparations, ta number of
tax amnesty programs help governments to allow the tax defaulters to pay their taxes with reduced
penalties. The Internal Revenue Service (IRS) announced an IRS amnesty program in September 2011
called the Offshore Voluntary Disclosure Initiative (OVDI) for taxpayers with unreported foreign
financial accounts, entities, or income.
While the OVDI limits the potential penalties on tax payers or undisclosed foreign bank accounts and
assets, the IRS amnesty programs offer a time frame for about 2-3 months for the tax payers to file
late returns or pay their taxes in full and failure to do so brings in harsh penalties. Most offshore
enterprises and limited liability companies, involved in international trading tend to protect their
assets to help manage the foreign income. Further, creating offshore trusts are one way of keeping
aside funds for heirs and descendants as these remain confidential to external parties and creditors.
Private foundations are also an option considered by many enterprises to safeguard their income from
Working through international tax issues and efforts to pursue criminal penalties for international tax
evasions, IRS reopened the Offshore Voluntary Disclosure Program in 2012. Nevertheless, proper
guidance from the IRS attorney's will facilitate them to use the tax flexibility and advantages allowed
for offshore accounts. IRS tax amnesty programs will help save millions of dollars besides penalties.
However, for the corporates and resident individuals in the United States, the leading tax planning
consultants offer insights into the tax codes applicable to them. The leading tax consultants also help
the customers with impact analysis, total compliance to IRS regulations, hassle free tax filing through
analysis and planning to minimize FBAR penalty, understanding of AMT Strategies and Foreign Tax
Credit as well as preparation of forms for Tax amendments and OVDP program.
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