Paul Caron in Tax Cheats Flock to IRS to Confess Their Sins quotes the following from a Wall Street Journal article:
Wealthy taxpayers have inundated the IRS in recent weeks with requests to come clean for past tax evasion, amid a government crackdown on undeclared income from overseas accounts.
The volume has been so great that Wednesday, the IRS issued a streamlined, three-page form for taxpayers seeking entry into its temporary voluntary-disclosure program.
“Last week we had 400 [applicants] — four times as many as in all of last year,” said IRS spokesman Frank Keith, who declined to provide more detailed figures.
Two main factors appear to be driving the clemency-seeking spree. The IRS disclosure program, which began in March and is set to end Sept. 23, offers Americans the possibility that they may face civil charges, which can carry lower penalties than criminal charges, for volunteering details of tax evasion.
At the same time, the IRS and the U.S. Justice Department are pressing ahead with efforts to investigate taxpayers who failed to report income earned from undeclared accounts with Swiss bank UBS AG.
Our Advice:
We generally recommend that delinquent taxpayers participate in the Voluntary Disclosure Program; however, taxpayers should not make disclosures to the IRS without first consulting an attorney.
A good tax lawyer will present the case in the light that is most favorable to the taxpayer enabling the taxpayer to get maximum benefit from the program.
Related Posts:
- Offshore Tax: IRS Issues FAQs on Voluntary Disclosure
- IRS Urges Foreign Bank Account Holders to Come Forward Voluntarily
- IRS Voluntary Disclosure Reminder
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