Offshore tax amnesties are international

December 31, 2009

Continuing tax forgiveness when it comes to offshore accounts isn't limited to the United States.

Encouraged by a tax amnesty that brought in about €80 billion (about $114 billion U.S.) between October and mid-December, Italian finance officials extended the program.

Economy Minister Giulio Tremonti said the amnesty, designed to to collect more assets currently deposited out of the country, will now run to April 2010.

And the earlier Italians bring their money back into the country, the better terms they'll receive. The extension calls for a fee of 7 percent on repatriated assets, but investors who move their money from foreign accounts to Italian institutions by Feb. 28 will pay a 6 percent fee.

This latest tax tax amnesty is Italy's third in the past eight years. Under the October to Dec. 15 terms, folks who repatriated their assets paid a 5 percent fine on the total but didn't have to declare how they earned the money.

The U.K. forgives, too: A similar offshore account amnesty also is underway in England, but only for a few more days.

The New Disclosure Opportunity amnesty started Sept. 1 and was part of a broader effort by the United Kingdom and other governments to crack down on offshore tax havens.

The deadline for disclosing that unpaid taxes are owed runs to Jan
4. Individuals then have until March 12
to pay what is owed.

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Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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