Late Filers: There’s a New Penalty-Free Opportunity to Catch up on Delinquent Tax Returns

New Internal Revenue Service program grants low risk expatriates, who have failed to file income tax returns and report on foreign retirement accounts, an opportunity to avoid penalties and enforcement actions.

Read the full press release, originally published on PR Web, below:

With the October 15 tax deadline around the corner, millions of Americans living abroad who have failed to properly file can ease their worries thanks to a recent IRS program designed to help low risk expatriates become compliant. The new program, part of the IRS’s Offshore Voluntary Disclosure Program (OVDP), eliminates penalties and additional enforcement actions for qualifying expats who are delinquent in filing income tax returns and reporting on foreign retirement accounts.

“This is truly a remarkable opportunity for many Americans living abroad, ” says Greenback Expat Tax Services President David McKeegan. “The IRS is giving potentially millions of Americans around the world an opportunity to come clean, become compliant, and avoid much-dreaded fees and penalties normally associated with late tax returns. It’s a benefit no qualifying expatriate should miss.”

Intended to help expats who either didn’t know they had to file or simply failed to do so, the plan is available to those who owe little or no back taxes. This group includes expats and Americans with dual citizenship living abroad who generally owe $1,500 or less in back taxes. Plan participants must file delinquent tax returns for the past three years and Report on Foreign Bank and Financial Accounts (FBARs) for the past six years.

According to Mr. McKeegan, “Many of our clients didn’t know they had to file, forgot, or simply failed do to so in time. When living abroad, it can be easy to lose track of your requirements.” He further explains that for many expats, the fear and confusion surrounding tax obligations lead them to neglect the issue all together. “By promoting the IRS’s new program, we hope to better inform and assist other expats who aren’t aware of this valuable and potentially time-sensitive opportunity,” he added.

Launched September 1, 2012, the IRS has stated that it may stop the program at any point.