Kathryn Keneally, assistant attorney general in the tax division at the US Department of Justice (DOJ) stated just a few days ago that 106 Swiss banks have already signed on to the Swiss-DOJ non-prosecution program (Program) announced at the end of August 2013. The Program is designed to encourage all Swiss banks to come forward and admit the role they played in assisting US persons to evade tax. Participating banks that meet all of the demands made by DOJ are eligible for non-prosecution agreements (employees and agents of the banks are not protected). Any Swiss bank that was already a target of US criminal investigation could not apply – 14 Swiss banks are ineligible under this provision.

The number of banks signing on to the Program (approximately one-third, as it was Read More

TaxConnections Blogger Virginia La Torre Jeker reminds to file extensionTax filing time is here for Americans. Due date is October 15 for those on extension and many people are panicking. Despite the shutdown of certain IRS operation, the IRS has made clear that the Oct 15 due date is still in effect and people must still file timely. You can read more from the IRS about the effect of the lapse in appropriations here. Taxpayers should continue to file and pay taxes as they would under normal government operations. Individuals who requested an extension of time to file should still file their returns by Oct. 15, 2013 either electronically or on paper. The processing of paper returns will be delayed until full government operations resume. Payments accompanying paper tax returns will still be accepted as the IRS receives them. Tax refunds will not be issued until normal government operations resume.

What happens if the overseas filer still cannot get his return in on time? They are sometimes allowed an additional extension beyond October 15, discussed more fully below.

Additional Extension of Time for Taxpayers Out of the Country

Taxpayers who are out of the USA can request a discretionary 2-month additional extension of time to file their returns (that is, returns are due by December 15 for calendar year taxpayers).

To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. Send the letter no later than the extended due date (October 15 for calendar year taxpayers) to the following address: Read More