IRS Settlement Initiative: Employees at Foreign Embassies, Consular Offices and International Organizations in the U. S. |
|
Deadline for Settlement Initiative Extended to June 30
The deadline is extended to June 30, 2007 for U.S.-based employees and former employees of foreign embassies, foreign consular offices and international organizations to participate in a one-time settlement initiative to resolve outstanding U.S. tax matters related to their employment.
The offer was announced November 17, 2006. The original deadline of February 20, 2007 is extended to make certain those wishing to participate in the election have the opportunity to do so.
In addition to the change in the deadline date, the terms of the settlement initiative are revised. Participating taxpayers will be required to resolve outstanding tax issues for 2004 and 2005. Tax year 2003 is no longer included under this initiative.
Those participating in the initiative can resolve their outstanding tax issues, such as:
-
failure to report wages, incorrect deductions claimed,
-
incorrectly established SEP/IRA retirement plans,
-
failure to pay self-employment tax, and
-
failure to file tax returns.
Taxpayers must elect to participate in this initiative. Elections must be postmarked no later than June 30, 2007.
Participants in the initiative also need to provide amended or original tax returns for tax years 2004 and 2005 that properly reflect their income and expenses.
Foreign embassy, consular office or international organization employees who fail to come forward may be subject to IRS audits and penalties which could cover more than just three years.
Questions about this program should be directed by email to embassy@irs.gov.
References/Related Topics
|
|
|
Page Last Reviewed or Updated: November 04, 2008