IRS Announces “Good Faith” Extension of Voluntary Disclosure Deadline


The IRS said on Thursday that it is making available to taxpayers a 90-day deadline extension to participate in the 2011 offshore voluntary disclosure initiative (OVDI). The extension would be available to taxpayers who have made a good faith attempt to fully comply by Aug. 31, but are unable to submit a complete package, the Service said in updated questions and answers (Q&A’s) on the OVDI. (For previous JofA coverage, see “ IRS Announces Second Offshore Voluntary Disclosure Program .”)

 

According to Q&A 25.1, the good faith attempt to fully comply must include the properly completed and signed agreements to extend the period of time to assess tax (including tax penalties) and to assess penalties for failure to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). Requests for up to a 90-day extension must include a statement of those items that are missing, the reasons they are not included, and the steps taken to secure them.

 

Updates were also made to Q&A’s on case resolution (Q&A’s 51.1, 51.2, 51.3); answers 32 and 35 on calculating the offshore penalty; and answers 51 and 52 on case resolution.

 

More from the JofA:

 

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.