Unreported income from hidden offshore accounts

On 21 September 2009, the Internal Revenue Service announced a one-time extension of the deadline for special voluntary disclosures by taxpayers with unreported income from hidden offshore accounts. These taxpayers now have until Octer 15, 2009 to prepare the necessary paperwork to qualify for the special penalty provisions.

Under special provisions issued in March, taxpayers with these hidden accounts originally had until Sept. 23, 2009 to come forward. Those taxpayers who do not voluntarily disclose their hidden accounts by the new deadline face much harsher civil penalties, where applicable, and possible criminal prosecution.

The IRS also announced that there will be no further extensions.