Saturday, July 30, 2011

IRS Extends Deadline for Foreign Nationals to Disclose Offshore Accounts

The Internal Revenue Service announced postponement of the Aug. 31, 2011 deadline for Indians and other foreign nationals to voluntarily disclose their offshore bank accounts.  The new due date is September 9, 2011.

According to the IRS announcement, taxpayers who have not yet submitted requests and documents under the Offshore Voluntary Disclosure Initiative (OVDI) must by September 9 submit identifying information to the IRS' Criminal Investigation Office and send a request for a 90-day extension for submitting a complete voluntary disclosure information package to the IRS' Austin campus.

The OVDI was announced in February 2011, designed to bring money held in foreign bank accounts back into the U.S. tax system and to help taxpayers with income from offshore accounts to comply with federal tax law.  The reporting is used to identify unreported income maintained or generated abroad.  Such funds may or may not be subject to U.S. taxation.  

Under the program, taxpayers that disclose previously undisclosed foreign accounts and comply with the terms of the program can avoid otherwise applicable civil penalties and criminal prosecution.  Those with immigration statuses vulnerable to violations of U.S. law may desire to pay closer attention to the OVDI.  The recent postponement was due to the recent east coast hurricane.

Those who have not yet complied, or have questions about the OVDI, should check the IRS website, contact their accountant, or schedule an information session with Chaudhary Law Office on how to comply.

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Satveer Chaudhary is the founding lawyer of Chaudhary Law Office, PLLC.  In practice over 10 years, Chaudhary brings 14 years of legislative experience as a State Senator and Member of the Minnesota House of Representatives to each and every case.At Chaudhary Law Office, our clients come first. Every client is treated with courtesy and is guaranteed effective representation. Practicing in the areas of  Immigration Law, Wills, Divorce, Family Law, Small Business and Criminal Law, we provide free intial consultations to all our clients.

In 2004  Satveer Chaudhary was named the University of Minnesota Law School Alumni of the Year. He was also awarded the Governor’s Certificate of Commendation for the Legal Aid Society of Minnesota, served as Special Assistant to Minnesota Attorney General Hubert H. Humphrey III, and was recognized by the worldwide Asian-Indian community for  his dedicated work, Chaudhary was named to the top-50 non-resident Indians in the world (NRI World  magazine).  

The information provided is offered for informational purposes only. It is not offered as and does not constitute legal advice. Chaudhary Law Office, PLLC does not seek to represent you based upon your review of this brochure. You should not make legal hiring decisions based merely upon brochures, advertising or other promotional materials.

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