Breaking news...IRS Extends Deadline for Disclosing Hidden Offshore Accounts

[Y2KEA]

IR-2009-84, Sept. 21, 2009

WASHINGTON ─ The Internal Revenue Service today announced a one-time extension of the deadline for special voluntary disclosures by taxpayers with unreported income from hidden offshore accounts. These taxpayers now have until Oct. 15, 2009.

Under special provisions issued in March, taxpayers with these hidden accounts originally had until Sept. 23, 2009 to come forward. Those taxpayers who do not voluntarily disclose their hidden accounts by the new deadline face much harsher civil penalties, where applicable, and possible criminal prosecution.

IRS officials decided to extend this deadline after receiving repeated requests from tax practitioners and attorneys around the country following an influx of taxpayer requests. By extending the deadline for a short period of time, the IRS is providing relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it. The extension will allow tax preparers and attorneys the necessary time to interview and advise their backlog of taxpayers with these hidden accounts, and prepare the necessary paperwork to qualify for the special penalty provisions.

The IRS also announced that there will be no further extensions.

[NSNM]

Could you clarify

If the disclosure reporting is for the year 2008 and forward, or is that also for prior years. Thanks for the information.

[erchess]

I believe that

it is for all past years that you had the account. You end up paying the taxes you would have paid with proper reporting plus some additional payment but not as much as you will pay if you do not come forward now yet you are one of those the IRS knows about or finds out about in the future.

[S T]

Seems like

I hardly think "all taxpayers" will comply by 10/15/09 - I saw the article come through my IRS email services and thought it strange for only about 3 weeks extension.

I would think that they need to extend the scope of this and extend the filing dates - Even IRS or "whomever" hasn't even acquired all of the account info yet !

Wouldn't IRS be researching this and gathering information for years to come?

"Fishing" ??

Sandy

[NSNM]

Thank you Erchess

I have a client who needs to make disclosure of foreign based financial account though amount is not substantial ($150 in interest earnings & less than $5000 in account value) whose return is about to be filed. Your clarification helped me to alert the client and to comply with. Thanks for bringing the subject on the Board.
Dealing with the same subject, is there not an exemption limit upto the account value of $10000 for disclosure purpose ? Could someone give opinion on it ? Thanks.
NSNM