The New Focus of IRS on Asia: How the Second Voluntary Disclosure Initiative Can Benefit US Citizens

April 19, 2011
China Institute
125 East 65th Street, New York, New York
Lawrence S. Horn, Richard J. Sapinski
China Institute

In 2011, the IRS' major focus on taxpayers who have not reported the income from foreign bank accounts on their U.S. tax returns has extended from Europe to Asia including countries such as China, India, Singapore, Japan and Korea. Recognizing that not everyone with unreported income from foreign bank accounts has acted with criminal intent, IRS announced a second Voluntary Disclosure Initiative on February 8, 2011. This initiative not only provides a means to avoid the potential for criminal prosecution but also possibly avoid or at least cap any civil penalty exposure that may exist.

Lawrence Horn and Richard Sapinski, experienced attorneys with prior U.S. Department of Justice and IRS experience, will discuss this initiative in the context of Asia and offer practical insights on how it benefits taxpayers who take advantage of it.