Independent Contractor Compliance Blog - by Collabrus™

WASHINGTON, D.C. - The Internal Revenue Service announced a one-time extension of the previous deadline (formerly September 23, 2009) for special voluntary disclosures by taxpayers with unreported income from hidden offshore accounts. These taxpayers now have until October 15, 2009.

This is a follow up on my post earlier this week, regarding when the Internal Revenue Service and the Department of Justice announced the agreement allowing the IRS to receive an unprecedented amount of previously private information on United States taxpayers who have accounts at the Swiss bank UBS.

Why the extension?                                                                  

The most recent news release stated, “IRS officials decided to extend this deadline after receiving repeated requests from tax practitioners and attorneys around the country following an influx of taxpayer requests.”

Swiss banks don’t promise secrecy any longer.

In August the IRS announced, “In addition, the Swiss Government has agreed to review and process additional requests for information for other banks regarding their account holders…”

There’s a more aggressive, hungry IRS.

It’s no secret the federal government needs as much revenue as it can get.  The IRS has been criticized recently for not doing its share, and this appears to be part of the IRS’ response.  You may expect other aggressive actions in the future.

They gave taxpayers more time, but at a price.

The IRS is allowing a little more time for taxpayers “who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it,” stating, “The extension will allow tax preparers and attorneys the necessary time to interview and advise their clients with these hidden accounts…”

The press release also stated that, “Those taxpayers who do not voluntarily disclose their hidden accounts by the deadline face much harsher civil penalties, where applicable, and possible criminal prosecution.”

Are you ready?

It doesn’t take a Tax Rocket Scientist to know both state and federal tax agencies are getting tougher and more aggressive in finding and collecting all the taxes they can-including misclassified workers.