Legal News

Silent or Quiet Disclosure of Offshore Accounts
Posted by: John DeLancett
January 24, 2012

The IRS has warned taxpayers that any "quiet" or "silent" voluntary disclosure of an offshore account, in an attempt to avoid either the first or second voluntary disclosure programs, would not be considered to be a valid voluntary disclosure, and might be subject to criminal treatment. Apparently, in an effort to show that it is serious, on May 19, 2011 the government filed it's first criminal prosecution of a taxpayer who made such a silent disclosure (a silent disclosure is parlance among tax practitioners for a taxpayer who simply files the return through normal filing procedures, as opposed to participating in these programs). The defendant was a Mr. Schiavo. The defendant, according to press reports, entered into a plea agreement and is scheduled to be sentenced on January 31, 2012 (see 2011 WTD 98-43, 2011 WTD 99-36).

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Say it Ain't So: Another Offshore Voluntary Disclosure Program
Posted by: John DeLancett
January 24, 2012

The IRS has this month ( January 9, 2012) announced yet a third Offshore Voluntary Disclosure Program. The information available for it is pretty thin at this point, but the information provided at a recent seminar indicates that:

1) It is indefinite;

2) It could change at any time;

3) It may later be limited to certain types of Taxpayers;

4) All documents are to be sent to Austin, TX where they are to be assembled before being sent to the Examiner;

5) The eight (8) year tax period will change as it goes on;

6) The opt out will still be available;

7) The IRS will address dual citizenship issues later with guidance and procedures.

8) The penalty rate on the FBARs is increased to 27.5%; although lower rates of 5% and 12.5% remain available for certain taxpayers.

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New IRS Voluntary Employee Reclassification Program
Posted by: John DeLancett
January 24, 2012

The IRS has announced (Announcement 2011-64) a Voluntary Employee Classification Settlement Program (VCSP). This allows qualifying taxpayers to voluntarily enter into an agreement with the IRS concerning workers who have been treated as independent contractors, who should have, in fact, been classified as employees. The IRS has conducted a national research project on this issue. On September 16, 2011, the Department of Labor and the IRS entered into an agreement to share information between them to further pursue this issue of misclassification of workers...

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