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Tax Lawyer > Blog > Amnesty for Off Shore Banking > Tax and Penalty Obligations, Offshore Bank And Foreign Asset Disclosure Reporting

Tax and Penalty Obligations, Offshore Bank And Foreign Asset Disclosure Reporting

By now in 2020, most American taxpayers are aware of the fact that a lot of new laws have been put in place to make sure that the U.S. taxpayer is reporting all of their offshore income their offshore assets and their offshore bank accounts.

There is an extremely important and valuable I.R.S. program available to U.S. taxpayers living both within and outside of the United States. It allows almost every American who has been afraid to step forward and disclose their foreign assets to the U.S. taxing authorities to do so with minimized penalties on unpaid taxes and un-filed information returns.

Streamlined Compliance Procedure Benefits

The program is called the I.R.S. Streamlined Filing Compliance Procedure. These procedures will be available for an indefinite period until otherwise announced. This means that the Internal Revenue Service can suddenly withdraw the program. Eligible taxpayers need to act quickly.

Glossary of Streamlined Terms & Definitions:

  1. Streamline Program: I.R.S. Program for unreported Offshore bank deposits to be reported

  2. Willful conduct: Intentional conduct to avoid taxes

  3. Amended Returns: Tax returns that amend original returns to make corrections

  4. Information Returns: Tax returns that do not calculate taxes owed but provide I.R.S. with additional information regarding the tax returns

  5. FBARS information returns: Information tax return that reports foreign bank deposits

  6. Quiet Disclosures: Filing of tax returns without entering the Streamline Procedure

  7. Foreign Financial Assets: Assets owned by Americans that are in foreign jurisdictions that must be reported to the I.R.S.

  8. Streamline Penalty: Penalty for late filing and failure to pay tax on offshore assets

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