IRS has asked involved U.S. taxpayers to come forward before IRS reads and dissects the “Panama Papers”. IRS will “plan how to use the huge trove of leaked documents to catch criminals — and urged Americans to come clean now before illegal activity is discovered”. “People hiding assets offshore should recognize the continued changes and progress in the international tax arena,” the IRS said. “More than ever, their best option remains to come forward voluntarily and participate in the IRS Offshore Voluntary Disclosure Program.” The penalties under the Offshore Disclosure Program are not as severe as if the IRS finds the out of compliance taxpayers itself. The IRS warning to the U.S. taxpayers comes after meeting with tax authorities from over 40 countries. All tax authorities are sorting through the evidence in a quest to deliver a combined response.
June 2016 JD Supra