EisnerAmper LLP Announces Offshore Voluntary Disclosure Initiative Task Force
U.S. Taxpayers and Resident Filers Must Comply with Foreign Bank Account Reporting and New U.S. Treasury Rules
EisnerAmper LLP today announced the formation of an Offshore Voluntary Disclosure Initiative (ODVI) program to assist affected taxpayers in properly complying with the recent U.S. Treasury initiative focused on foreign bank account reporting requirements.
“Our goal as advisors is to help taxpayers take advantage of the opportunity the ODVI program now provides so they will be in full compliance with Treasury regulations,” said Timothy Speiss, Partner-in-Charge of EisnerAmper’s Personal Wealth Advisors Practice.
On February 24, 2011 the U.S. Treasury Department issued updated rules regarding required recordkeeping and reports (“Report of Foreign Bank Accounts” or “FBARs”) that must be filed by affected U.S. citizens or resident individual taxpayers (including trusts, partnerships, LLCs, corporations, and other entities) that own or control financial accounts in foreign countries where the account value exceeds $10,000. The updated Treasury rules cover calendar years 2003 to 2010. Voluntary participation in the Treasury initiative is open through August 31, 2011 (see IRS Release 2001-14).
Under the Treasury regulations, affected taxpayers and potential participants in the Treasury’s initiative are those who have not filed FBAR reports, and/or who have not reported income from foreign bank and investment accounts in prior years. Under the Treasury initiative, participating taxpayers must pay all delinquent income taxes and interest for the calendar years 2003 through 2010, and pay delinquency penalties and other penalties. Additionally, participants must pay an offshore penalty of 25 percent of the highest aggregate account balance in the taxpayer’s foreign bank accounts during the years 2003 through 2010. As stated by EisnerAmper international tax partner Jack Meola, “The updated Treasury rules provide qualifying taxpayers a voluntary disclosure program that helps protect against the risk of additional significant IRS penalties and criminal sanctions due to not complying with FBAR reporting and tax payments attributable to prior years.”
EisnerAmper’s Task Force is comprised of international tax specialists who assist affected taxpayers in the complicated process that is required to compile applicable foreign bank account information, and translate foreign currency amounts into U.S. dollars using customized technology. Adding to the complexity is the need to prepare foreign bank account reports and amended federal income tax returns for prior years, and calculating the applicable income tax, interest, and penalties due to properly comply with the Treasury Program initiative. “Complying with the updated rules and voluntary disclosure program is complex and affected taxpayers should obtain advice from tax advisors who have proper experience with FBAR reporting rules.”
For additional information regarding EisnerAmper’s FBAR services or other international tax services, please contact EisnerAmper partners Jack Meola, Hal Adrion, Richard Sackin, Timothy Speiss, or Cristina Wolff, Director.
For additional information please see the EisnerAmper Alert IRS Announces a New Voluntary Disclosure Program for Offshore Financial Accounts
About EisnerAmper’s International Tax and FBAR and ODVI Services
With a multi-expertise approach EisnerAmper assists taxpayers to comply with IRS foreign bank account reporting requirements, as well as those taxpayers who participated in prior IRS FBAR voluntary disclosure programs. EisnerAmper’s international tax practice provides advisory and compliance services and thought leadership to individual and corporate clients, trusts, and other entities with complex U.S. and foreign tax consulting needs.
About EisnerAmper LLP
EisnerAmper is one of the premier accounting, tax and business advisory firms in the United States and the leading regional firm in the Northeast. EisnerAmper provides a wide array of services to a diverse client base including financial institutions, publicly traded and privately held companies and high net worth individuals and family groups.
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