The IRS released a major announcement last week that provides new Streamlined Domestic Offshore Procedures for the IRS OVDP for Resident US taxpayers. The new guidelines take effect July 1, 2014 and provide a path for resident US taxpayers to come into compliance with FBAR and foreign asset reporting, while reducing penalties for oversight and under-reporting of accounts and assets from 27.5% to 5% for “non-willful” conduct. This change further reduces the “look back” period from 8 years to 3 years, and could save many US taxpayers with foreign bank accounts and assets a substantial amount of money. If you are a resident US taxpayer with a foreign bank account (even if it is with a US bank), property, investments or other income producing asset you need to take action immediately to ensure that you are in full compliance with the IRS and US laws.
