Taxpayers with Offshore Assets Get Second Chance

Summary: U.S. taxpayers have been given another opportunity to disclose hidden offshore bank accounts to the IRS. Fifteen months after the expiration of the previous voluntary disclosure effort, the IRS unveiled on February 8 a new Offshore Voluntary Disclosure Initiative (“OVDI”) to encourage taxpayers with undisclosed foreign accounts and assets to come forward and comply with U.S. tax law. The attached Client Alert reviews the new conditions, penalties and deadlines of the new OVDI.