US expats have a little more time to file for the Offshore Voluntary Disclosure Initiative (OVDI) thanks to Hurricane Irene. The IRS announced on Friday, August 26, 2001 that the deadline has been moved to September 9, 2011 for those seeking entry into the amnesty program.
The speed of information dissemination has done an incredible job getting the word out about the OVDI program and scaring a lot of expats half to death. We have received numerous calls about this program and two questions have been at the top of the list. How much will I owe for penalties?
Odds are for most expats, you will not be penalized. The OVDI program FAQ’s No. 17 and No. 18 provide relief if you meet certain criteria. The information in the following paragraph summarizes these FAQ’s.
US expatriate citizens that reported all of their taxable income, but recently learned of their filing requirements for the Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), or other U.S. foreign information returns like Form 5471 (Information Return of U.S. Persons with Respect to Certain Foreign Corporations) or Form 3520 (Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts) can obtain penalty relief by filing these delinquent returns.
If you need help with getting into compliance with your US tax filing, please contact an InTaxAct CPA today. We have fair pricing and offer multi-year tax preparation packages.