Extension of Time to Enter the IRS Offshore Voluntary Disclosure Initiative - Proving Helpful for Taxpayers with Accounts in India

WASHINGTON, Aug. 31, 2011 /PRNewswire/ -- To encourage U.S. taxpayers living in the United States and abroad to file U.S. tax returns and Report of Foreign Bank and Financial Accounts (FBARs), the IRS has extended the deadline to September 9, 2011 to enroll in the 2011 Offshore Voluntary Disclosure Initiative (OVDI).

"The extra time is a positive development for U.S. taxpayers living in the U.S. and abroad who want to come into compliance with U.S. filing obligations," said Jim Mastracchio, Co-chair of Baker Hostetler's nationwide tax controversy practice. "The OVDI program was due to expire today, but the additional time provides several more days for last minute submissions. We have seen an increase in the number of U.S. taxpayers seeking advice about the OVDI, particularly taxpayers who have bank accounts in Asia."

One reason may be that HSBC Bank recently notified its customers who hold accounts in India to seek advice from a U.S. tax advisor.  The bank's notice states that the IRS served the bank with a summons seeking account information regarding its U.S. customers.  "The additional time should help a number of taxpayers who recently received the bank notifications and want to participate in the program," added Mr. Mastracchio.

To qualify for the OVDI, U.S. taxpayers must enter the program before the IRS becomes aware of their offshore account or opens a civil or criminal investigation.  Once a taxpayer enters the program, a set procedure is in place to provide the IRS with the necessary bank information and amended tax returns.

"Time is of the essence," stressed Mr. Mastracchio.  

For questions regarding this announcement and other tax matters, you can reach Mr. Mastracchio at 202.861.1650 or [email protected].

About Baker Hostetler

Founded in 1916, Baker Hostetler is among the nation's 100 largest law firms with 750 attorneys coast to coast, delivering the highest quality legal counsel on the most complex and critical issues facing clients today. The firm has offices in Chicago, Cincinnati, Cleveland, Columbus, Costa Mesa, Denver, Houston, Los Angeles, New York, Orlando and Washington, D.C. Its five primary practice groups are Business, Employment, Intellectual Property, Litigation and Tax. For more information, please visit www.bakerlaw.com.

SOURCE Baker Hostetler