On January 9, 2012, the IRS announced a new Offshore Voluntary Disclosure Program (“2012 OVDP”), which effectively extends (with several changes) the 2011 program that ended on September 9, 2011. Continue reading
What was formerly implied is now stated directly — there is now penalty relief for most US citizens residing in Canada or overseas who failed to file Treasury Forms 90-22.1. Continue reading
The IRS has just issued the following “fact sheet” on reasonable cause for delinquent filing of Form TDF 90-22.1. The main thrust is that FBAR penalties will usually be abated when no income tax (or a “deminimis” amount) is owing on the delinquent Forms 1040. A detailed analysis of Fact Sheet 2011-13 will be provided in the next post.
According to an article published December 2, 2011 in The Globe and Mail, a Canadian periodical, the IRS might be lenient on US citizens (and green card holders) living in Canada who didn’t disclose their “offshore” accounts by filing Form TDF 90-22.1. (This form is sometimes known as the “FBAR” form, based on an abbreviation for “foreign bank account reporting.”) David Jacobson, the US Ambassador to Canada, was quoted as saying that “if … you don’t owe taxes to the US, and you file your return[s] and they show you don’t owe taxes, there aren’t going to be any penalties for having filed late.” He reportedly also said the IRS position would be published within “weeks.” Presumably he means there will be no penalty for late filed FBAR forms so long as late filed Forms 1040 demonstrate that no tax is due.