Monday, September 22, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

IRS to waive penalties for some overseas accounts

By
From page B6 | June 19, 2014 |

WASHINGTON — The Internal Revenue Service is offering to waive steep penalties for Americans living abroad who haven’t been paying their U.S. taxes.

But there is a catch: You have to be able to show that you didn’t evade U.S. taxes on purpose.

American citizens living abroad are required to file U.S. tax returns, even if they keep all their money overseas. Similarly, U.S. citizens living in the United States are required to tell the IRS about any accounts they have in foreign banks.

The penalties for not reporting these accounts are stiff. If there is more than $10,000 in an unreported account, the IRS can impose penalties of 100,000 — more if the accounts are really big.

The IRS announced a program Wednesday that would largely waive these penalties if taxpayers come forward and show that they didn’t hide the money on purpose.

Americans living abroad can have all penalties waived, if they file three years’ worth of tax returns and pay any back taxes.

Americans living in the U.S. can come clean by disclosing overseas accounts and paying a penalty equal to 5 percent of the account’s assets.

For people who are willfully evading U.S. taxes, the IRS is tweaking an existing program that imposes stiff penalties for people who come forward, but allows them to escape criminal prosecution.

“Our aim is to get people to disclose their accounts, pay the tax they owe and get right with the government,” IRS Commissioner John Koskinen said in a statement.

IRS officials declined to provide examples of how someone could inadvertently fail to report income or bank accounts.

Instead, they offered this definition: “Non-willful conduct is conduct that is due to negligence, inadvertence or mistake, or conduct that’s the result of a good-faith misunderstanding of the requirements of the law.”

“If a taxpayer is very conflicted about this, I think that what we would advise is that they consult with a tax adviser about the willfulness standard,” said Michael Danilack, an IRS deputy commissioner.

Danilack said the agency expects thousands of people to take advantage of the program. In 2009, the IRS estimated that more than 7 million U.S. citizens live abroad, not counting military.

The disclosure program is a particularly good deal for Americans living in countries with higher tax rates than the U.S.

Typically, U.S. citizens living abroad must file a U.S. tax return and pay U.S. taxes on all income, regardless of where it is earned. However, they can deduct taxes paid to a foreign government from their U.S. tax bill.

The U.S. stepped up efforts to crack down on people who are willfully hiding assets overseas in 2009. Since then, the IRS has offered a series of programs to encourage people to come clean. In general, people who come forward can escape criminal prosecution in exchange for paying reduced penalties and back taxes.

More than 45,000 people have come forward so far, paying about $6.5 billion in taxes, interest and penalties, the IRS said Wednesday.

Starting next year, it will get even tougher for Americans to hide assets overseas. As part of a 2010 law, more than 77,000 foreign banks from about 70 different countries have agreed to start sharing detailed information about U.S. account holders with the IRS. The effort of part of a global crackdown on overseas tax evasion.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Vaca Christian hits FM airwaves

By Susan Winlow | From Page: A1, 3 Comments | Gallery

 
Hazmat crew responds to Fairfield after spill Sunday

By Ryan McCarthy | From Page: A3

 
SBDC schedules free workshop for small businesses

By Susan Hiland | From Page: A3

Cordelia Rotary to host Senior Center fall dinner

By Susan Hiland | From Page: A3

 
CHP offers teen drivers class

By Susan Hiland | From Page: A3

Golf tourney to help uninsured children

By Susan Hiland | From Page: A3, 1 Comment

 
Dixon Scottish Games return to Solano

By Susan Hiland | From Page: A3

 
Local governments schedule meetings

By Susan Hiland | From Page: A4

 
Master Gardeners schedule annual plant exchange

By Susan Hiland | From Page: A4

 
Il Fiorello Olive Oil Co. hold butchery class

By Susan Hiland | From Page: A4

 
American music makes a sweet sound Sunday

By Ryan McCarthy | From Page: A4

North Bay Pediatrics celebrates anniversary

By Barry Eberling | From Page: B8

 
Sutter Solano has new leader

By Barry Eberling | From Page: B8

Popeye’s seeks Fairfield site

By Barry Eberling | From Page: B8, 5 Comments | Gallery

 
.

US / World

Some California wells run dry amid drought

By The Associated Press | From Page: A1, 1 Comment

 
More drought forecast next year across West

By The Associated Press | From Page: A1

32 structures destroyed in California wildfire

By The Associated Press | From Page: A1

 
Crews cleaning fuel spill in San Francisco Bay

By The Associated Press | From Page: A5

Police say rifle carried by ambush suspect found

By The Associated Press | From Page: A5

 
Gov. Brown signs clean-air vehicle legislation

By The Associated Press | From Page: A5, 4 Comments

Feds censure local police, yet give lethal weapons

By The Associated Press | From Page: A5

 
Melted glacier sends miles of mud down Mt. Shasta

By The Associated Press | From Page: A5

Sierra Leone concludes nationwide Ebola lockdown

By The Associated Press | From Page: A7

 
2016 may loom, but Jeb Bush is focused on business

By The Associated Press | From Page: A7

China, US, India push world carbon emissions up

By The Associated Press | From Page: A7

 
New Afghan president, but vote totals kept secret

By The Associated Press | From Page: A7

Del. authorities: Bus overturns, at least 1 dead

By The Associated Press | From Page: A7

 
NASA’s Maven explorer arrives at Mars after year

By The Associated Press | From Page: A9

North Korea powerful temptation for some Americans

By The Associated Press | From Page: A10 | Gallery

 
Craig Ferguson plays it loose with new game show

By The Associated Press | From Page: A11

‘Maze Runner’ races past ‘Tombstones’ with $32.5M

By The Associated Press | From Page: A11

 
.

Opinion

 
Pulse poll: Will the drought end this year?

By Daily Republic | From Page: A8

 
Idealists made mess of 20th century

By Jack Batson | From Page: A8, 3 Comments

Thanks go out to Telstar Instruments

By Letter to the Editor | From Page: A8

 
.

Living

Community Calendar: Sept. 22, 2014

By Susan Hiland | From Page: A2

 
Today in History: Sept. 22, 2014

By The Associated Press | From Page: A2

Ned’s drinking is ruining our parents’ business, health

By Kathy Mitchell and Marcy Sugar | From Page: B5

 
Horoscopes: Sept. 22, 2014

By Holiday Mathis | From Page: B5

Horoscopes: Sept. 23, 2014

By Holiday Mathis | From Page: B7

 
.

Entertainment

TVGrid Sept 22

By Daily Republic Syndicated Content | From Page: A10

 
TVGrid Sept 23

By Daily Republic Syndicated Content | From Page: A11

.

Sports

 
Giants swept by Padres; fall 4 ½ behind Dodgers

By The Associated Press | From Page: B1

Stanton leads Cardinals past 49ers 23-14

By The Associated Press | From Page: B1 | Gallery

 
Donaldson’s walk-off HR powers A’s past Phillies

By The Associated Press | From Page: B1 | Gallery

Penalty nixes Raiders rally, Patriots win 16-9

By The Associated Press | From Page: B1 | Gallery

 
NFL roundup: Cowboys erase 21-point deficit, beat Rams 34-31

By The Associated Press | From Page: B2 | Gallery

Armijo boys run to 2nd-place finish in Irvine

By Daily Republic staff | From Page: B2

 
Hamilton wins in Singapore, takes F1 title lead

By The Associated Press | From Page: B2

Ex-Titans kicker Bironas killed in car crash

By The Associated Press | From Page: B2

 
Seahawks hold off Broncos 26-20 in overtime

By The Associated Press | From Page: B2 | Gallery

Hur pulls away for LPGA Tour win in Alabama

By The Associated Press | From Page: B9 | Gallery

 
Logano wins at New Hampshire in 2nd Chase race

By The Associated Press | From Page: B10 | Gallery

.

Business

 
Native Americans getting final settlement payments

By The Associated Press | From Page: B8

5 ways to protect yourself from data breaches

By The Associated Press | From Page: B8, 1 Comment

 
.

Obituaries

.

Comics

Baldo Sept 22

By Daily Republic Syndicated Content | From Page: B4

 
Garfield Sept 22

By Daily Republic Syndicated Content | From Page: B4

Beetle Bailey Sept 22

By Daily Republic Syndicated Content | From Page: B4

 
Peanuts Sept 22

By Daily Republic Syndicated Content | From Page: B4

Sally Forth Sept 22

By Daily Republic Syndicated Content | From Page: B4

 
For Better or Worse Sept 22

By Daily Republic Syndicated Content | From Page: B4

Wizard of Id Sept 22

By Daily Republic Syndicated Content | From Page: B4

 
Frank and Ernest Sept 22

By Daily Republic Syndicated Content | From Page: B4

Blondie Sept 22

By Daily Republic Syndicated Content | From Page: B4

 
Rose is Rose Sept 22

By Daily Republic Syndicated Content | From Page: B4

Get Fuzzy Sept 22

By Daily Republic Syndicated Content | From Page: B4

 
Pickles Sept 22

By Daily Republic Syndicated Content | From Page: B4

Baby Blues Sept 22

By Daily Republic Syndicated Content | From Page: B4

 
Zits Sept 22

By Daily Republic Syndicated Content | From Page: B4

Dilbert Sept 22

By Daily Republic Syndicated Content | From Page: B4

 
B.C. Sept 22

By Daily Republic Syndicated Content | From Page: B4

Bridge Sept 22

By Daily Republic Syndicated Content | From Page: B5

 
Word Sleuth Sept 22

By Daily Republic Syndicated Content | From Page: B5

Cryptoquote Sept 22

By Daily Republic Syndicated Content | From Page: B5

 
Sudoku Sept 22

By Daily Republic Syndicated Content | From Page: B5

Crossword Sept 22

By Daily Republic Syndicated Content | From Page: B5

 
Beetle Bailey Sept 23

By Daily Republic Syndicated Content | From Page: B6

Peanuts Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Zits Sept 23

By Daily Republic Syndicated Content | From Page: B6

Frank and Ernest Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Pickles Sept 23

By Daily Republic Syndicated Content | From Page: B6

For Better or Worse Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Rose is Rose Sept 23

By Daily Republic Syndicated Content | From Page: B6

Sally Forth Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Garfield Sept 23

By Daily Republic Syndicated Content | From Page: B6

Get Fuzzy Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Baldo Sept 23

By Daily Republic Syndicated Content | From Page: B6

B.C. Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Dilbert Sept 23

By Daily Republic Syndicated Content | From Page: B6

Wizard of Id Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Baby Blues Sept 23

By Daily Republic Syndicated Content | From Page: B6

Blondie Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Word Sleuth Sept 23

By Daily Republic Syndicated Content | From Page: B7

Crossword Sept 23

By Daily Republic Syndicated Content | From Page: B7

 
Bridge Sept 23

By Daily Republic Syndicated Content | From Page: B7

Cryptoquote Sept 23

By Daily Republic Syndicated Content | From Page: B7

 
Sudoku Sept 23

By Daily Republic Syndicated Content | From Page: B7