Snap Fact #216
2012 Progress Report: President Obama's Foreign Account Tax Compliance Act (FATCA)!
The IRS previously had said it was unlikely to offer amnesty following its 2009 and 2011 programs. But the IRS says it’s collected more than $4.4 billion so far from the two previous international programs and much money is still expected from the 2011 Offshore Voluntary Disclosure Initiative (OVDI).
That’s some serious change given tax revenues over the last two years. Besides, more and more people are turning up with these issues, many of whom seem reluctant to come forward in the absence of a formal invitation. For that reason and to provide a program into the future, the IRS has reopened its Offshore Voluntary Disclosure Program (OVDP).
This is great news and the IRS should be commended for changing its mind, offering the kind of pre-packaged program many taxpayers find more palatable than a more open-ended voluntary disclosure. The latter, many fear, might or might not go well, with variables that can be harder to predict.
The IRS says this third offshore program will be open indefinitely. It is mostly similar to the 2011 OVDI but here’s what’s new: