The IRS has announced that it is extending the Offshore Voluntary Disclosure Initiative Program (“OVDI”) into 2012. This extension is due to the sucess of the last 2 programs, which brought a significant number of taxpayers into compliance with their reporting obligations.
Any United States person, living in the U.S. or abroad, who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year must file a FBAR Form. A FBAR is a Report of Foreign Bank and Financial Accounts and is filed using Form TD F 90-22.1.
The OVDI program allows for decreased penalties for taxpayers who have been delinquent in filing these forms each year and failing to report any associated income. Moreover, the OVDI program is in place to give taxpayers a “fresh start” and for them to be able to avoid criminal prosecution.
See the attached article or call my firm for more details.