The IRS formal program for making voluntary disclosures of offshore accounts and unreported foreign income has been reopened.  This is the third in a series of voluntary disclosure programs announced by the IRS.  This newest program reinstates fixed penalty amounts for taxpayers who agree to amend prior tax returns and pay taxes due and file outstanding FBARs to disclose foreign accounts.  For taxpayers who still wish to come clean with the government, this offers an opportunity to come into compliance with the tax laws.  Most terms of the 2012 program remain the same as the 2011 program, but the maximum FBAR civil penalty is increased from 25% to 27.5%.

The prior programs have proven lucrative for the government, with the IRS collecting $4.4 billion to date.  The IRS believes a large number of taxpayers still have not reported their foreign accounts.  Taxpayers who would like more information regarding the 2012 Voluntary Disclosure Program should call Jim Mastracchio at (202) 861-1650 or Jennifer Benda at (303) 764-4025.

The IRS announcement can be found here:  http://www.irs.gov/newsroom/article/0,,id=252162,00.html?portlet=108