tag:blogger.com,1999:blog-6398232680738279469.post2900551432830807066..comments2024-03-12T07:30:17.846-07:00Comments on The Tax Times: Instructions - New Streamlined Filing for Non-Resident & Non-Filer U.S. Taxpayers!Ronald A. Marini, Esq.http://www.blogger.com/profile/14304486100168506240noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6398232680738279469.post-45049297715243061072012-09-06T07:53:59.026-07:002012-09-06T07:53:59.026-07:00Streamlined OVDI promises unsure relief for few
T...Streamlined OVDI promises unsure relief for few<br /><br />The IRS has gone live with its Streamlined Offshore Voluntary Disclosure Initiative (OVDI) program as of September 1, 2012. <br /><br />My opinion that this streamlined process is close to a waste of time. There are four reasons: First, this streamlined process hardly addresses the vast majority of innocent non-compliant offshore accounts holders who tried their best. Second, it has the potential to reward those who made no attempts at compliance while punishing those who did. Third, it only applies to expatriates or “inadvertent” US citizens. Lastly, the guidance is so vague and uncertain, that is is foolhardy to recommend this program except to very, very few.<br /><br />It does not affect the majority of innocent non-compliance<br /> <br />First, this initiative does not address the vast majority of cases concerning Taxpayers who have filed their returns with omitted foreign source income. <br /><br />Its limited to expatriates or inadvertent US taxpayers<br /> <br />In order to be apply for the streamlined program, one must be an expatriate citizen living abroad or an “inadvertent” citizen (like Canadians who were born in the US but otherwise lived in Canada, or adult children of foreign ambassadors born in the US). If you are living in the US (even on a VISA), this program does not apply to you, regardless of innocence.<br /> <br />You can use the program if you never filed a US tax return, but you can’t if you did<br /> <br />This program has the odd effect of placing someone who was in total non-compliance on better ground than someone who attempted compliance. It has the perverse effect of rewarding people who filed no returns, while punishing those who filed returns with the admittedly onerous full OVDI.<br /> <br />The standards are vague and uncertain<br /><br />So, while the streamlined OVDI offers plenty unfairness and uncertainly, the standard 2012 OVDI at least provides certainty. <br /><br />Summary from http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=159564204&gid=2758738&trk=eml-anet_dig-b_nd-pst_ttle-cn&ut=32Gh_Ls-atyRo1Ronald A. Marini, Esq.https://www.blogger.com/profile/14304486100168506240noreply@blogger.com