The IRS today issued a release to remind U.S. taxpayers with undisclosed offshore accounts about compliance with their federal tax obligations.
The IRS release—IR-2016-137 (October 21, 2016):
According to the IRS release, approximately 55,800 taxpayers have used the OVDP to resolve their tax obligations, and another 48,000 taxpayers have used separate, streamlined procedures to correct prior non-willful omissions and meet their federal tax obligations.
OVDP offers taxpayers with undisclosed income from foreign financial accounts and assets an opportunity to get current with their tax returns and information reporting obligations. The program encourages taxpayers to voluntarily disclose foreign financial accounts and assets now, rather than risk detection by the IRS at a later date and face more severe penalties and possible criminal prosecution.
The IRS reported that automatic third-party account reporting has entered its second year under the FATCA regime and the network of inter-governmental agreements (IGAs) between the United States and partner jurisdictions. Other information also continues to come to the IRS as a result of the Justice Department’s Swiss bank program. As part of a series on non-prosecution agreements, participating banks continue to provide information on potential non-compliance by U.S. taxpayers.
The IRS developed “streamlined filing compliance procedures” to accommodate taxpayers with non-willful compliance issues. Submissions have been made by taxpayers residing in the United States and from those residing in other countries.
There is a separate process exists for taxpayers who have paid their income taxes but omitted certain other information returns, such as the Report of Foreign Bank and Financial Accounts (FBAR).
The IRS reported that it recently revised the certification forms used for the Streamlined Filing Compliance Procedures. Read the most current versions of these forms: Form 14653 [PDF 39 KB] and Form 14654 [PDF 51 KB].
The IRS also noted that certain commonly used telephone numbers relating to the OVDP and the streamlined filing compliance procedures have changed.
For more information, contact a tax professional with KPMG’s Washington National Tax:
Steve Friedman | +1 202 533 4110 | email@example.com
Lauren Roberts | +1 202 533 5616 | firstname.lastname@example.org
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.