Pay Money Offshore Amnesty Irs Allowed Paid Taxpayers

A "tax amnesty program" is a period of time when "taxpayers" (people who pay taxes, or who should pay taxes) are allowed to admit to a previous instance of tax evasion and pay a penalty that is less than what it normally is or should be. For instance, the taxpayer may be allowed to "disclose" (share information about) previously "unreported income" (money received that was not reported to the government) and pay the taxes owed on it without having to pay "interest" (a percentage of money calculated every month or year based on the amount owed) or "fines" (money that must be paid as a punishment).

The IRS offers "offshore amnesty programs" specifically for taxpayers who have hidden money in "offshore accounts" (bank accounts in other countries). The Offshore Voluntary Disclosure Program was offered in 2009 and 2011, and then as an "open-ended" (without an ending date; continuing until further notice) program in January 2012. In 2012, the IRS "commissioner" (head or leader of the agency) "announced" (stated) that the IRS had "collected" (arranged to received) more than five billion dollars in "back taxes" (taxes that should have been paid in the past, but weren't) as a result of "voluntary" (according to a person's will or desire, without being forced to do something) "disclosures" (telling others about secret information).

Why do taxpayers voluntarily disclose their offshore "holdings" (assets; things one owns that has value or worth)? Because the penalties they pay for voluntarily disclosure are "significantly" (a lot) less than the penalties they would pay if their "wrongdoings" (the bad things people have done) are discovered and "prosecuted" (taken to court) by the IRS.