Voluntary Compliance Programs Boosting Disclosures of Offshore Income

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Stepped-up efforts by IRS to identify tax evasion outside the United States, including increased information-sharing with other countries, better use of third-party information, and voluntary reporting compliance programs has led to an increase in voluntary disclosures by taxpayers of offshore income, a senior IRS official says. Gary Gray, deputy chief counsel (Procedure and Administration), says that through the end of 2011, the Service had received 33,000 voluntary disclosures through its voluntary compliance programs, leading to the payment of some $5 billion in back taxes and penalties. Moreover, the number of such disclosures has continued to grow, and IRS is using the latest information to launch a new wave of investigations of parties involved in the offshore evasion, he adds.