So, you have heard a lot about this IRS offshore amnesty program but you don’t know what it means, when it ends, or why it is important. Well, this program was designed by the IRS to collect taxes on individual US citizens who earn or have accounts overseas with $10,000 or more. Individuals that fail to report their earnings could be looking at a five-year sentence in prison or a fine of up to $500,000; if you reported your earnings by October 15, 2009, your foreign account has amnesty and there is no need to worry.
Of course, if you did not do so then your date for filing is way past due. However, there is no need to worry because the deadline, and the original program in general, has been reconsidered. There is a new set of guidelines as of February 8, 2011, that allows individuals who did not hear about or apply for the first program to apply to a second federal tax amnesty program. The due date for the new program is August 31, 2011. As a third chance is unlikely, it is best to report your earnings as soon as you can to avoid the penalties that come with tax evasion.