Have your clients been hiding money in an off-shore account? No need to admit it here, but the IRS is offering another (the most recent previous one was in 2009) amnesty program through August 31, 2011.
Hidden offshore accounts currently risk detection by the IRS and the ensuing high penalties and possible criminal prosecution that accompanies it. Through the above mentioned date, however, voluntary disclosures will pay between a 5% and 25% penalty on their accounts as well as back interest.
While this is a steep price to pay, it is far from the penalties which will accumulate if the IRS discovers a hidden offshore account and decides to prosecute the account holder. In the long run, it’s a smarter decision to pay the rate than risk the penalties.