IRS Commissioner John A. Koskinen made a startling revelation at a recent tax conference that the IRS was considering changing the existing OVDP to make things “more fair and equitable.” Mr. Koskinen’s remarks focused on those who may not have “willfully” filed false or misleading FBARs to the IRS, versus those who are criminally trying to avoid paying US taxes. It is interesting that examples included US expatriates who have lived abroad for several years, and the “need to allow them a window to come into compliance.” This is not a cause for celebration, as it may present a window into the thinking of the IRS itself. The point of the remarks was the need for all US citizens, US expatriates and foreign nationals who live and work in the US to fully and accurately report their holdings in offshore accounts, property and assets.
In his conclusion, Mr. Koskinen said “Our goal is to ensure we have struck the right balance between emphasis on aggressive enforcement and focus on the law-abiding instincts of most U.S. citizens who, given the proper chance, will voluntarily come into compliance and willingly remedy past mistakes.” My conclusion is just as straight forward: The IRS is aggressively enforcing FBAR compliance, has access to most offshore account and asset information and expects taxpayers to “remedy past mistakes” before being labeled as criminal tax evaders
