The American tax authorities (IRS) announced on the 9th January 2012 a new Offshore Voluntary Disclosure program which allows taxpayers, with a previously unreported foreign bank account, to settle the tax due with a mitigation of the risk of criminal prosecution. This latest programme follows, in many ways, the programs of 2009 and 2011 but removes the deadline by which applications may be made although the IRS say they can end the program at any time.

The requirement is for those disclosing to pay back taxes for eight years prior to disclosure and the appropriate delinquency penalties which have been increased from 25% to 27.5%. Non-US residents may qualify for a reduced 5% penalty if the taxpayer was compliant in the jurisdiction of residence. Advice obtained from a qualified US attorney will be subject to attorney-client privilege. For more details see Withers Worldwide Stop Press.