The IRS has significantly improved its existing programs that
enable U.S. citizens living abroad to become compliant with their
U.S. tax filing obligations without being subject to any penalties,
and has also made significant changes to the separate existing
offshore voluntary disclosure program (OVDP) for taxpayers that
have willfully failed to report offshore accounts.
Key actions
Canadian-resident U.S. citizens who have not been filing tax
returns should review the new procedures which may cancel out any
penalties they otherwise would owe. The new procedures are
available here.
Taxpayers who have willfully failed to report offshore accounts
or assets and are considering entering into the OVDP should make
note of the August 3, 2014 deadline mentioned below to avoid
increased penalties and the June 30, 2014 deadline for transitional
relief.
