Q: What is the IRS Tax Amnesty Program?
A: The IRS Amnesty program is the IRS' effort to collect the tax on previously undeclared income from various sources, with the payoff being that the taxpayer that discloses the account will not be prosecuted criminally, as well as potentially receive partial clemency on the taxes and penalties. The Optional Voluntary Disclosure Initiative program was offered by the IRS in 2011 and the same program will likely be offered in 2012
A tax amnesty program can provide full tax relief, but typically such a program has a very short window of opportunity. The goal of an amnesty program is for the government to collect as much tax revenue as possible within a short window of time. Typically this timeframe is 2-3 months. The program is also an opportunity for taxpayers to file late returns, make revisions or pay off a balance in full.
During the most recent tax amnesty program over 15,000 Americans took advantage of this tax relief, enjoying a limit on penalties and fees for failing to report offshore account and assets, or for failing to submit returns or submit returns in a timely manner. Collectively, this program saved tax payers millions of dollars and alleviated unnecessary stress and headache from dealing with IRS collectors and more severe penalties.
Have questions regarding a prior or future IRS tax amnesty program? Any one of our IRS tax attorneys can provide you with a free 1 on 1 consultation to discuss your options. Contact us today. (800) 669-4775