Failure to report worldwide income or in some cases, not filing a Report of Foreign Bank Financial Accounts, can result in significant penalties. The U.S. Internal Revenue Service (IRS) announced a new voluntary disclosure program for undeclared foreign accounts on March 23, 2009, called the IRS Offshore Income Reporting Initiative (the "Initiative"). The program gives a six-month window, or until September 23, 2009, to report such accounts to the IRS. Self-exposing taxpayers who qualify under certain conditions will not be subject to criminal penalties or the civil-fraud penalty.
The article continues to detail the regulations of the Initiative, in particular it addresses U.S. taxpayers who are either temporarily residing in Israel or have dual U.S./Israeli citizenship. To read the full article, please click the link below.