One of the conditions of the new Offshore Voluntary Disclosure Initiative is the requirement that all income tax liabilities including taxes, interest on the income tax, and penalties be paid, along with an FBAR penalty with the submission of the supporting documents. The question is what if you cannot now make the payment in full or at all.
The IRS has published guidelines in the form of Frequently Asked Questions to anticipate some of the issues that may come up. FAQ 20 and its answer state the requirement for payment and FAQ 25 and its answer describe how a payment agreement will be approached.
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.