Tidy Tax Services Logo

Blog Archives

IRS Offshore Voluntary Disclosure Program Updated – Paul Gaulkin CPA

currency from other countries

In early 2011, the IRS announced their second Offshore Voluntary Disclosure Initiative, which is designed to bring offshore money back into the United States tax system. The idea is to help those who have hidden accounts overseas to bring their money back to the US and become current with their taxes. Then again in early 2012, the IRS announced it would be reopening the voluntary disclosure initiative for the third time. This is in response to the US government’s ongoing … Read more

Transactions Lacking Economic Substance Form 8275 – Paul Gaulkin CPA

disclosure

If the IRS determines that a transaction lacks economic substance, the underpayment of tax attributable to the disallowance of tax benefits will be subject to a 20% penalty. The penalty will increase to 40% if the taxpayer does not adequately disclose the relevant facts affecting the tax treatment on their return or on a statement attached to the return. Amending the Return An amendment made to a return is not taken into account if it is filed after the taxpayer … Read more