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IRS makes major announcement concerning overseas-assets program

On Behalf of | Mar 20, 2018 | Business Formation & Planning |

As experienced Connecticut business lawyers, we know at the proven commercial law firm of Berdon, Young & Margolis in New Haven that our diverse and valued clients routinely deal with a host of complex concerns.

Formation and financing issues test every business principal. So too do matters surrounding contracts, licensing, employee relations, insurance and dispute resolution.

And, no, we’re not forgetting tax considerations, which are a top-tier and persistent concern for every American business.

Some select companies are especially impacted by a host of federal laws that impose stringent and truly complex tax-reporting duties on them as entities with overseas financial holdings. A number of Connecticut enterprises are obviously under that microscope.

And they deal with the regulatory challenges as best they can, with their utmost focus being required to lawfully respond to multiple IRS requirements imposed in recent years.

A recent Forbes article that touches centrally on business taxation spotlights the onus placed upon business owners having offshore financial accounts. Many companies do, of course, and for entirely valid reasons.

The IRS is a jealous mistress and wants its share of all assets held abroad by U.S. individual and corporate filers. To that end, it has crafted a number of laws mandating reporting and, sometimes, payment. They go by well-known acronyms such as FBAR, FATCA and OVDP. Forbes notes that the list of penalties linked with noncompliance “is distressingly long.”

Maybe it will be just a tad bit shorter in the near future. The IRS announced just a few days ago its intention to terminate the OVDP (Offshore Voluntary Disclosure Program) program effective September 28 of this year. That initiative has been requiring affected filers to report assets in foreign institutions that exceed $10,000 in any given year.

There will obviously be a lot of questions forthcoming in the wake of that news. An experienced Connecticut business law firm can either respond to them directly or ensure that a client is appropriately referred to advisers well qualified to speak to their personal situation.