The Internal Revenue Service (IRS) has
reopened its Offshore Voluntary Disclosure Program (OVDP) for the
third time allowing US citizens currently hiding offshore accounts
to disclose them without facing prosecution.
The penalty framework will see taxpayers in
the highest penalty category pay 27.5% of the highest aggregate
balance in foreign bank accounts/entities or value of foreign
assets during the eight full tax years prior to the disclosure.
This is up from 25% in 2011.
Go deeper with GlobalData
US regulators have been aggressively pursuing
individual US citizens it suspects of hiding substantial undeclared
taxable assets.
The IRS and Department of Justice is also
involved in investigating offshore banks it suspects of aiding US
citizens to evade tax.
Rising risk for tax
evaders
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By GlobalDataThose with smaller offshore accounts, where
assets did not surpass $75,000 in any calendar year, will qualify
for a lower 12.5% penalty with others qualifying for a 5%
penalty.
The IRS previously ran the program in 2009 and
2011, collecting more than $4.4bn from 33,000 voluntary
disclosures.
The 2012 program will be similar to the one
run in 2011, although this year the OVDP will run for an indefinite
period and the terms of the program can be changed at any time.
