I have recently received panic phone calls from accountants and clients of accountants about the alleged death of the historic quiet disclosures for qualifying for the IRS voluntary disclosure practice. I have tracked the immediate panic down to a recent discussion article in the TSCPA Viewpoint. The article is titled "Quiet Disclosures Out, Voluntary Disclosures Back In." (See article here.) The article was inspired by comments made by the Chief of IRS CI in a panel discussion at the 2009 May Meeting of the ABA Tax Section. The article reports, as the title states,
The world has now turned upside down again. At a meeting of the ABA Tax Section in Washington, D.C. in May, the Chief for the Criminal Investigation Division announced that “quiet disclosures” would no longer be accepted.I have discussed on this blog the comments actually made at the ABA Tax Section meeting and don't think they sound a death knell for quiet disclosures. My prior blog, titled Noise About Noisy and Quiet Voluntary Disclosures (5/10/09), may be viewed here. In view of the current panic, I shall make just a few other comments:
1. The disclosure under the new foreign bank account voluntary disclosure initiative requires a noisy disclosure following the procedures established for that initiative. (See the IRS wed page here.) If a taxpayer wants the criminal no-prosecution assurance in writing and the substantial civil tax penalty benefits (as compared to a worst case) that noisy disclosure procedure is required.