Blog Forensic Accounting, Certified Fraud Examiner, Litigation Support

The Internal Revenue Service today announced a one-time extension of
the deadline for special voluntary disclosures by taxpayers with unreported income from
offshore accounts. These taxpayers now have until Oct. 15, 2009 for voluntary foreign account disclosure.

http://www.irs.gov/pub/irs-news/ir-09-084.pdf

 There are numerous articles about the failure by taxpayers to disclose hidden offshore accounts.  These articles appear intimidating while also appearing to offer relief for voluntary disclosure of offshore accounts through amnesty programs.

 Amnesty programs usually do not mean immunity from prosecution.  Generally amnesty programs are only applicable to civil issues and not criminal issues.

The following is an example of an article discussing offshore accounts and amnesty for voluntary disclosure.

http://money.aol.com/article/tax-dodgers-run-to-irs-amid-crackdown/623609

I recently read an enlighting article on the Ways and Means website regarding levies on Social Security income and counterproductive Federal Tax Liens. The article is essentially the testimony of noted IRS attorney Alvin Brown who worked for the Office of Chief Counsel in Washington, D.C. and is well known for representing taxpayers before the IRS.

In his testimony to the Ways and Means Subcommittee, Alvin Brown points out IRS administrative practices dealing with tax liens and tax levies that reduce the collection of tax revenue, increase the Tax Gap, create economic hardship for taxpayers, contribute to a loss of jobs, result in business failures, and conflict with sound tax policy. In the article Mr. Brown makes several interesting points that support the conclusion that correction of counterproductive practices by the IRS will operate as a “revenue raiser” that will assist in reducing the Tax Gap and have a positive impact on the economy.

Click to read the full article on the Ways and Means committee website.