IRS Announces Second Special Offshore Voluntary Disclosure Initiative

The Internal Revenue Service (IRS) announced on February 8, 2011 a special voluntary disclosure initiative designed to bring offshore money back into the US tax system and help individuals with undisclosed income from hidden offshore financial accounts get current with their taxes. The new voluntary disclosure initiative will only be available through August 31, 2011. This program allows individuals with previously unreported foreign financial accounts to significantly reduce their exposure to substantial civil tax penalties and, in many cases, to eliminate the potential of criminal prosecution. Foreign accounts include assets held in various offshore trusts, foundations, corporations and other entities.