The two earlier posts with comments and replies in this series are
- "Opting Out" of OVDI and OVDP; What is Really Happening? (12/12/11), here.
- "Opting Out" #2 (3/2/12), here.
I also include below the following from #2:
Addendum 4/19/12; as amended on 4/21/12: I previously had a link to a blog that offered information about the IRS's application of the non-willful penalty on audit. I have subsequently determined that the information was not materially different from the IRM provision and felt that it would be better to link to the IRM provision rather than to the secondary source. The IRM provision is Exhibit 4.26.16-2 (07-01-2008) Normal FBAR Penalty Mitigation Guidelines for Violations Occurring After October 22, 2004, here. (See the table named Normal FBAR Penalty Mitigation Guidelines for Violations Occurring After October 22, 2004 - Per Person Per Year. Readers should remember that, upon a showing of reasonable cause, the FBAR penalty may be avoided altogether. See my prior blog titled IRS Guidance on U.S. Persons with Foreign Assets and, Coincidentally, Quiet Disclosures on FBAR Delinquencies (12/9/11), here. I should also note that, based on anecdotal information I have received from some practitioners, this Guidance is not rigid. Persons with compelling stories to tell can get substantially less than the Guidance suggests or even no penalty.
1. A reader has posted opt-out documents here; I think the author -- with the pseudonym of Moby -- has done a particularly good job with his opt out request. Accordingly, I have bookmarked it for easier navigation and post it here. I encourage readers who are considering opting out or are in the process of making submissions in support of lesser penalties in audits (whether on opt out or otherwise) to look at this document. (Note that the bookmarks are in the pdf file which can be viewed by downloading the pdf document.)
2. Many of the comments posted on this blog and its related earlier blogs (see above) are worthy of being posted (perhaps with some moderation) to the blog titled Open Forum Comments to Congress and IRS Regarding Tax Administration for Offshore Accounts (4/9/12), here. I would like to consolidate appropriate readers comments there if possible, so encourage the commenters to consider doing that.