IRS Offers Amnesty to Those Who Evaded Tax Through Offshore Accounts

Thank goodness. I was afraid offshore account holders could ever get a lucky break:

The IRS today announced reduced penalties for individuals who have evaded U.S. taxes though offshore accounts. The IRS will waive criminal prosecution for taxpayers who come forward over the next six months and pay back taxes, interest, and reduced penalties for the past six years.

Seriously, though, this is actually a great idea, one that should be expanded to all taxpayers. Last year, Oklahoma had its Clean Slate in '08 program which waived all penalties and interest on back taxes paid, or arranged to be paid, by November 1st. Of course, it was a great success - all government programs are, aren't they? But I think the IRS should have a similar program - a limited time to get their accounts resolved, once and for all. The "tax gap" wouldn't be eliminated but it would be significantly narrowed.

But lacking action on the IRS' part, we could all become offshore investors.