FBARs, Other Returns Included in Extension for Offshore Asset Disclosure

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 says it would include foreign bank account and other foreign information reports in the nine-day extension it granted to taxpayers seeking to participate in the agency's Offshore Voluntary Disclosure Initiative, in what one stakeholder says is a welcome decision. The move is the latest news for the initiative, which allows taxpayers to voluntarily disclose their offshore assets in exchange for a set penalty structure and the chance to avoid criminal prosecution. Taxpayers also can catch up if they have missed filing the Report of Foreign Bank Account (FBAR), or other information returns such as the Form 5471 for controlled foreign corporations and Form 3520 for foreign trusts, as long as they have reported all their income and paid all their taxes. Earlier this month, IRS gave taxpayers an extra nine days to participate in the broader OVDI because of the potential impact of Hurricane Irene, moving the deadline from Aug. 31 to Sept. 9.