US Offers Tax Disclosure Opportunity

American citizens and green card holders living in the UK are required to file annual tax returns and other information to the Internal Revenue Service (IRS). 

While this may be easy to overlook where the person has lived in the UK for some time and may not even have a US tax liability, there are significant penalties for non-compliance.

To encourage taxpayers back into the system, a disclosure opportunity has been created for 2003 to 2010 inclusive which generally eliminates criminal prosecution by the IRS and reduces penalties to a more manageable level. 

The 2011 Offshore Voluntary Disclosure Initiative [OVDI] will give taxpayers the opportunity to file or amend US tax and information returns by 31 August 2011.

LINK: Offshore Voluntary Disclosure Initiative