Warning: Please read the first two comments to this post before accepting at face value the advice of Medic Blog (the editor).
After entering OVDI/P, American expats later learned that such was only meant for tax cheats and not for them. Now, it seems that the same may also apply to soft/quiet disclosures. Are soft/quiet disclosures considered to be a “trap” to punish those who filed old FBARs as being “tax cheats”? Is there anything that an American expat can do without being accused of being a “tax cheat”?
May 31, 2013
…John and Mary made the mistake of amending their past tax returns and filing their old FBARs. On these returns, they were required to put down account numbers and bank information.John and Mary fell into the IRS’s trap. Now the IRS has all the information it needs and if audited, the burden of proof is on John and Mary that they did not commit a willful violation of FBAR. A willful FBAR penalty is 50% of account value. And this can be assessed for multiple years.
What John and Mary must do right now about their soft/quiet disclosure
If John and Mary amended their tax returns and filed delinquent FBARs, they have provided the IRS with all the information they need to identify their tax accounts for a possible soft disclosure. Essentially John and Mary have raised their hands and said “WE ARE TAX EVADERS, HERE IS ALL OUR INFORMATION. PLEASE COME AND PENALIZE US AS MUCH AS YOU CAN.”
Then, it is just a matter of time before they will be faced with the most expensive and lifestyle changing bill of their entire lives.
Get into the OVDP — now!
Read more at Medic Blog
At what point does this become a human rights violation, or better yet, under which conditions is this not a human rights violation? In relation to Eritrea, the only other nation in the world with a diaspora tax, such behavior is considered as being a human rights violation.
On the basis of NRK information about harassment of Eritrean citizens in Norway, the Norwegian authorities consider taking this up with the Eritrean authorities as a possible violation of human rights, says Imerslund to NRK.
Source: Asmarino Independent
the collection of the 2% tax collected by the Eritrean government from Eritreans in diaspora as extortion is unlawful.