The New IRS 2011 Offshore Voluntary Disclosure Initiative and Foreign Bank Account Reporting

Kaye Scholer LLP presented a one hour seminar and teleconference to discuss the new IRS Offshore Voluntary Disclosure Initiative (“OVDI”). On February 8, 2011, the IRS announced the new special OVDI encouraging taxpayers with unreported foreign income and/or undisclosed foreign accounts to become compliant with U.S. tax law. According to the IRS, this new OVDI allows taxpayers “a last, best chance to get back into the U.S. tax system.”

The following topics were addressed:

• History of IRS voluntary disclosure practices and current procedures
• Highlights of the new 2011 OVDI
• Differences between this and the 2009 Offshore Voluntary Disclosure Program
• Applicable penalty provisions and considerations for reduced penalties
• FBAR reporting requirements under newly issued Treasury Regulations
• FBAR civil and criminal penalties for failure to file and related statute of limitations
• Considerations regarding non-OVDI filings of amended or delinquent returns and FBARs
• Question and answer session