As a parent, I have, on more than one occassion, painted myself in a cornor by giving one of my kids just one more chance. Inevitably they have called my bluff. So then its decision time, offer one last chance (my wife calls this picking your battles) or pull the trigger on some draconian punishment, such as “20 minutes in your room” or “no DS”, etc, etc. Well, it is comforting to know that the IRS does this too. Especially to taxpayers with offshore assets.
In early 2011 the IRS Commissioner announced the Offshore Voluntary Disclosure Initiative (OVDI), saying:
“As we continue to amass more information and pursue more people internationally, the risk to individuals hiding assets offshore is increasing. This new effort gives those hiding money in foreign accounts a tough, fair way to resolve their tax problems once and for all. And it gives people a chance to come in before we find them.” (emphasis added)
It is VERY INTERESTING to note that this is the THIRD program of its type. How many times can you dangle to the carrot and offer some level of amnesty? Well, as the previous programs brought in over 4 BILLION dollars in revenue with very little taxpayer cost, I guess you don’t fix what ain’t broke!