Offshore voluntary disclosure initiative program reopened
On Jan. 9, 2012, the IRS reopened the Offshore Voluntary Disclosure Initiative (OVDI), which provides taxpayers with undisclosed income from offshore accounts an opportunity to get current on their tax returns and limit potential penalties. In conjunction with the reopening, the IRS announced that, during the two previous OVDI programs, in 2009 and 2011, more than $4.4 billion had been collected.
Patti Burquest, principal, Washington National Tax
Bob Adams, partner, Washington National Tax
Leeah Fontaine, manager, Washington National Tax
New guidance on foreign financial asset reporting
The IRS released new information about Form 8938, Statement of Specified Foreign Financial Assets, which will need to be attached to certain individual taxpayers' 2011 tax returns in order to report specified foreign financial assets for the 2011 tax year. Covered taxpayers that fail to file Form 8938 could be subject to various penalties. Form 8938 does not replace the FBAR filing requirements, although there may be some overlap in information required to complete the two forms.
Larry LeBlanc, partner, Vienna, Va.
Sarah Waters, director, Vienna, Va.
Patty Kowalska, manager, Schaumburg, Ill.