International Data Sharing with the IRS
In a recent news release, the IRS announced the opening of a new International Data Exchange Service (IDES) for financial institutions and foreign countries to securely provide information on financial accounts held by U.S. persons. More than 145,000 financial institutions have registered and more than 110 countries have agreed to provide this information to the IRS.
This announcement marks another step in the IRS’ attempts to tax previously “hidden” offshore accounts. (U.S. taxpayers with over $10,000 in foreign accounts are required to file an annual foreign bank account report (FBAR) and report worldwide income.)
The IRS currently has in place an offshore voluntary disclosure initiative (OVDI), which provides incentives for U.S. taxpayers with unreported foreign income to disclose. The OVDI offers reduced penalties — […]
The IRS has issued guidance in the form of 
During a recent webinar, an IRS official stated that for purposes of the current (2013) filing season, taxpayers aren’t required to report virtual currencies on a Report of Foreign Bank and Financial Accounts (FBAR) with the U.S. Treasury. However, while this previously disputed matter appears to be settled at present, the official stated that this position may well be subject to change. Read more