Grand Jury investigations are generally kept secret, but it has become clear that the Department Of Justice (“DOJ”) has eight more offshore banks now under formal grand jury investigations. The DOJ has not provided the public with the names of the alleged banks but it has been rumored that the agency has strong evidence against the banks in regards to conduct and/or information concerning taxpayers with undisclosed offshore accounts.

Even thought the deadline for the IRS’s 2011 Offshore Voluntary Disclosure Initiative has concluded, U.S. taxpayers with undisclosed offshore accounts still have the opportunity to come forward through the IRS’s traditional Voluntary Disclosure Program.

U.S. taxpayers with undisclosed offshore accounts have less than a week to take advantage of the IRS’s 2011 Offshore Voluntary Disclosure Initiative (OVDI).  The deadline for entering the “amnesty” program is Friday, September 9, 2011.  The OVDI may likely be the last opportunity for U.S. taxpayers with undisclosed offshore accounts to benefit from pre-determined penalties and reduced criminal exposure, but only if the taxpayer comes forward before the deadline.

Due to the potential impact of Hurricane Irene, the IRS has extended the due date for offshore voluntary disclosure initiative requests until September 9, 2011.

More than ever, it appears the best alternative for taxpayers with undisclosed bank accounts is to enter into the IRS 2011 Offshore Voluntary Disclosure Initiative (OVDI).  But time is quickly running out to take advantage of the OVDI – the deadline for entering the “amnesty” program is next week.  The OVDI may well be the last chance for U.S. taxpayers with undisclosed offshore accounts to benefit from pre-determined penalties and reduced criminal exposure, but only if the taxpayer comes forward before the deadline of August 31, 2011.