Go to UK | HK site
DarkLight mode
News – 08.01.24
US Supreme Court clarifies Foreign Bank Account Report (FBAR) penalty application
In 2023, the Supreme Court confirmed that the $10,000 penalty for non-wilful failure to file an FBAR will apply per form and not per account … Read more
Insight
2024/25 UK tax rates and allowances guide
Download our 2024/25 UK tax rates and allowances guide, to stay on top of the key tax rates and allowance updates amid day-to-day living. … Read more
Find us quickly
1403 14/F The Lucky Building, 39 Wellington St, Central, Hong Kong
enquiries@buzzacott.hk T +852 2531 7000
Effective September 2018, the IRS have officially closed the Offshore Voluntary Disclosure Program (OVDP), which was a voluntary disclosure program designed for taxpayers with exposure to potential criminal liability and/or substantial civil penalties due to a willful failure, to report foreign financial assets and pay all tax due in respect of those assets. However, the IRS are still committed to keeping the Streamlined Filing disclosure facility open for the time being.
The Streamlined Filing disclosure facility allows US taxpayers to file the last three late US tax returns and last six late FBARS with reduced penalties assuming the non-filing can be shown to be non-wilful.
With the withdrawal of the OVDP, it is our view that the IRS may look to close down or amend the terms of the Streamlined Filing Program in the near future. We therefore strongly advise you to contact us as soon as possible for advice on the IRS guidance on non-wilfulness.
There are alternative IRS procedures available to get information returns up to date in a penalty-free manner, subject to reasonable cause, for US taxpayers who have reported all of their foreign income on their US returns but have not filed their information returns, such as:
If you have already received a notice from the IRS demanding that you make a payment of taxes or penalties, or threatening a lien on your property, you may need to take some urgent action. Our team of experts is very experienced in handling correspondence with the IRS on behalf of our clients. Sometimes it takes persistence to bring an enquiry to a close but we will be able to achieve the best possible outcome for you.
In some cases, it may be advisable to draw on the expertise of a US qualified lawyer in order to determine the best approach and make sure your disclosure is as robust as possible. If so, we can help to find the right legal adviser for you.
