The good news is that the IRS has released new streamlined guidelines for the OVDP that provide an opportunity for resident US taxpayers to reduce penalties for non-reported or under-reporting on the FBAR or other foreign asset related forms from 27.5% to 5%. We have to document that the oversight was “non-willful”, and complete the appropriate submission by August 15, 2014. This option can also reduce the “look-back” period (the amount of years the IRS can look back and apply penalties and interest) from 8 years to 3 years. These are substantial developments that can provide a huge cash savings to those who come into compliance with IRS guidelines and US laws pertaining to foreign accounts and assets.
