On Monday, March 11, 2013, we postedThe IRS Revokes Amnesty to US Taxpayers With Israeli Bank Accounts...They Must be Feeling Faclept;" where we discussed that the Internal Revenue Service sent faxes to tax attorneys nationwide informing them that clients who were previously accepted into its criminal amnesty program for those who disclose once-secret offshore accounts, have “upon further review” been disqualified.

Now the IRS has done a U-turn and now allows previously disqualified US taxpayers back into the offshore Voluntary Disclosure program. In a change of policy, the IRS informed dozens of US expatriates with undeclared bank accounts in Israel they can re-join the Offshore Voluntary Disclosure Program (OVDP). The individuals concerned are clients of Bank Leumi.

The IRS is not explaining as to why the Bank Leumi clients were excluded from the OVDP or why they are being re-admitted to it. A likely reason is that the IRS officer who examined their OVDP applications did not realize they were already known to the IRS as non-compliant. Clients of other Israeli banks who have been excluded from OVDP are now hoping to be re-admitted.

Source:

Forbes