Whenever you play Monopoly you eagerly await the Get out of Jail free card so your stay can be brief and painless. The IRS doesn't play by the Boardwalk or Park Place rules. Ignorance to the tax laws is not an excuse that the IRS will acknowledge. Actions speak louder than words and often the IRS will use you actions to show if your mistake was willful or not, thus determining how serious your consequence will be.
FATCA has been implemented, but it is not strong many groups still harboring strong political and legal animosity. FATCA is now legally in force, but the Treasury department is promising "to go easy" on enforcement for the first two years since delays and high costs leave many areas of the world still unable to fully comply with FATCA. FATCA has greatly increased global concern over the use of foreign accounts to evade government taxation, yet there is still conversation as to whether this is the correct solution to solve the problem or if it will just cause more damage to the United States and innocent, tax abiding Americans.
The IRS has released changed to its Offshore Voluntary Disclosure Program (OVDP) encouraging a broader group of U.S. taxpayers to come into compliance. The streamlined procedures allow for those who were non-willful in their non-compliance to pay a lesser miscellaneous penalty. But, is this the best option?
The IRS is hoping to provide greater flexibility to appeal to a greater audience if taxpayers that have been waiting to come into compliance with their taxes. Previous programs have allowed 45,000 individuals to come forth and understanding the different programs can help you decide if now is the time to clean up your offshore account taxes.