Offshore Account Voluntary Disclosure Deadline Extended to Oct. 15


The IRS today extended the deadline for voluntary disclosures by taxpayers with unreported income from hidden offshore accounts from this Wednesday, Sept. 23, to Oct. 15. The IRS cautioned that there would be no further extensions.

 

The IRS said that tax practitioners had requested an extension because some are having trouble interviewing and advising the large number clients who have come to them for help. The deadline extension is designed to help taxpayers who “had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it,” according to the IRS.

 

The voluntary disclosure program was announced in March. Taxpayers making voluntary disclosures of offshore noncompliance under the program can avoid the foreign bank and financial account balance nondisclosure penalty provisions and other provisions pertaining to various information returns.

 

Taxpayers who have properly reported their taxable income but did not realize that they had an obligation to file Form TD 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), were also given until Sept. 23 to file all delinquent FBARs. It is unclear from the IRS announcement whether the Oct. 15 extension also applies to them.

 

The IRS subsequently updated its voluntary disclosure FAQ Web page to reflect (and the AICPA FBAR Task Force confirmed with the IRS) that even if no income is underreported and the voluntary disclosure process is not being used by a taxpayer, other relevant delinquent information returns covered by the voluntary disclosure FAQs (that is, FBARs noted in FAQ no. 9, and forms 3520 and 5471 noted in FAQ no. 42) also have an extended filing deadline of Oct. 15, 2009.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.