As Deadline Approaches, Taxpayers Fear Disclosing Offshore Assets

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

IRS's intense effort to get taxpayers to tell the government about their offshore assets may be running into difficulties even as IRS continues its crackdown on foreign banks that help taxpayers hide those assets, numerous practitioners tell BNA in a series of recent interviews. As the Aug. 31 deadline approaches for participation in IRS's second initiative to allow taxpayers to voluntarily disclose assets held overseas, the agency says it is seeing progress. But practitioners say many taxpayers are balking—confronted with what they see as a tough penalty structure and the fear that U.S. tax authorities could take up to 25 percent of not only their foreign bank accounts but of related assets, such as real estate and business interests.