US Expands Offshore Disclosure Program

June 20, 2014 Taxation in USA

WASHINGTON D.C. – Taxpayers who inadvertently evaded their tax obligations in the USA using offshore entities will now have a new opportunity to aright the situation.

On June 18th the US Internal Revenue Service issued a statement announcing that the currently running Offshore Voluntary Disclosure Program (OVDP) is being extended to ease the terms and penalties applicable to taxpayers who accidentally evaded their tax obligations, while increasing the penalties applicable to individuals who willfully and deliberately used offshore schemes to evade their taxes in the USA.

Under the newly expanded terms of the OVDP, the IRS will loosen the conditions for entering into the program, and will ease the filing process by eliminating some of the currently required administrative procedures.

The IRS has also tightened up the rules applicable to individuals who willingly evaded their tax obligations in the USA, and has increased the amount of information which must be provided alongside an application to join the OVDP, while also increasing the penalties and fees applicable in such situations.

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