The US Internal Revenue Service (IRS) has reportedly made amendments to its limited-amnesty programs for US taxpayers with undeclared offshore accounts.
Under the streamlined procedures, taxpayers who reside in the US will be subject to a 5% penalty on the balance of undisclosed accounts, while those living outside the US may owe no penalty at all, reported The Wall Street Journal.
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However, taxpayers in a different program who admit to willfully hiding accounts will be eligible for a 27.5% penalty.
The changes will require US taxpayers who don’t owe taxes but haven’t filed paperwork to explain why they didn’t to the IRS, which will have to accept the excuse to escape a fine.
IRS said that the penalty will not apply to assets, such as a bank account, for which the taxpayer had signature authority.
The move follows an announcement in June this year by the US Internal Revenue Service (IRS) under which it has made changes in its offshore voluntary compliance programs, providing new options to help both taxpayers residing overseas and those residing in the US.
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By GlobalData
