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American Expats get US disclosure program changes
Zone(s): USA ¦ Sector(s): Taxation
[23 June 2014, Tax-News.com] By Mike Godfrey, Tax-News.com, Washington, USA: Under pressure from American residents abroad that have not deliberately failed to abide by their tax obligations, the Internal Revenue Service (IRS) has announced major changes to its offshore voluntary compliance program (OVCP) from July 1, 2014.The current OVDP was launched in 2012 and is the successor to prior voluntary programs offered in 2011 and 2009.
The IRS has disclosed that, since the launch of the first program, more than 45,000 taxpayers have become compliant voluntarily, paying about USD6.5bn in taxes, interest, and penalties. The IRS confirmed that the changes “reflect the thoughtful input of the tax community given the growing awareness among US taxpayers of their offshore tax obligations.” An expansion of the streamlined filing compliance procedures, which were originally announced in 2012, is intended for US taxpayers whose failure to disclose their offshore assets was “non-willful,” while there are other important modifications to the 2012 OVDP.