Foreign Appeal Notice Needed for IRS Offshore Disclosure Effort Eligibility

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IRS releases new details about its offshore voluntary disclosure program, tightening the eligibility requirements by making it clear that taxpayers must notify the Justice Department if they are challenging the disclosure of tax information in a foreign court. Failing to do so will make them ineligible for IRS's offshore voluntary disclosure program, IRS says in a statement. The program allows taxpayers who have assets hidden offshore to come forward and disclose that information, pay a penalty, and avoid prosecution. IRS announces that it will institute procedures beginning Sept. 1 to help U.S. citizens residing overseas resolve tax issues related to foreign retirement plans. Under some circumstances, tax treaties permit income deferrals under U.S. tax law if deferral elections are made on a timely basis, IRS explains.