IRS's Offshore Disclosure Deadline Is 15th April

by Leroy Baker, Tax-News.com, New York

12 March 2003

The Internal Revenue Service announced Monday that the final date for personal income tax returns is also the disclosure deadline for the newly announced Offshore Voluntary Compliance Initiative.

This initiative could affect millions of taxpayers in the United States, including those who own businesses. The OVCI calls for tax practitioners - preferably tax lawyers due to confidentiality and privilege concerns - to advise clients to disclose delicate decisions for offshore transactions conducted in 1999 and 2001, whilst filing their 2002 tax returns.

Incoming Senate Finance Committee Chairman, Senator Charles Grassley said, "I think this is an opportunity for a fresh start that taxpayers would be smart to embrace. Further, I am also pleased that while taxpayers will be getting a fresh start, IRS plans on making it the end of the line for crooked perpetrators."

Senator Max Baucus, senior Democrat, Senate Finance Committee added his approval. "I applaud the IRS for today's initiative that will help to restore public confidence and eliminate the illegal practice of avoidance through offshore tax shelter schemes. The agency should be commended for its innovative approach to gathering information on promoters and to efficiently disposing of the thousands of cases already identified. The IRS' message to tax evaders is clear."

The OVCI is one step in an ongoing effort by the IRS to stamp out fraudulent use of accounts in foreign tax haven countries.

Recommended