In 2009 the IRS conducted an Offshore Voluntary Disclosure Program, OVDP for short, in which taxpayers could come clean as it were with the IRS about their offshore accounts and other assets, pay back taxes and other penalties, and thus avoid criminal proceedings. That program ended October 15, 2009, but this year the IRS has decided to have another OVDP. The window on this one ends August 15, 2011.
FBARs, the forms used to disclose offshore assets and accounts to the IRS, are due June 30th.
Together these two have created an interesting gray area regarding online gambling. For offshore online gambling it is unclear at the moment how those fit in with both FBAR at the disclosure program. It is possibly to interpret tax law and IRS policy to support and to oppose that conclusion.
As always it remains the case that the best course of action regarding these or other tax issues is to consult a tax professional.
For more information on FBARs, offshore disclosure, tax amensty or other tax issues, contact the Illinois tax attorneys at Horowitz & Weinstein.