US Leniency Program Nets 14,700

November 18, 2009 Offshore BankingTax HavensTaxation in USA  No comments

The US Internal Revenue Services (IRS) has announced that their voluntary tax disclosure program has resulted in over 14,700 submissions.

It was revealed on November 17th by Doug Shulman, IRS Commissioner, that the US tax disclosure leniency program has been met with “unprecedented success”. Describing the achievement he said, “To put it simply, this is a historic milestone for the nation’s hardworking taxpayers”.

In the wake of the US Department of Justice’s (DOJ) legal action against Swiss bank UBS, the leniency program has received an unparalleled number of submissions. Far surpassing the annual average of 100 voluntary submissions, the final number has even doubled the IRS’s initial estimate of 7,500 disclosures.

Those who apply for the voluntary disclosure program and agree to pay all appropriate taxes, interest charges and fines will lessen their chance of prosecution for any tax evasion committed. The penalty liability charged on their hidden wealth will also be reduced. While exact figures are not yet available, Doug Shulman has revealed that the revenue from the disclosure program could be in the range of billions.

No indication has been given by the IRS that another voluntary disclosure program will be run. Encouraging those evading their tax laibility to disclose them anyway, Doug Shulman said, “It will be much worse for them if we find them first”.

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