The IRS made permanent the fast track settlement program with regard to tax exempt and governmental entities. Eligible cases under this fast track program will receive the expedited settlement process. However, a number of exclusions exist with the program.
See IRS Announcement 2012-34
In ongoing efforts to identify US taxpayers hiding assets overseas and raise additional tax revenue, the IRS announced changes to its Voluntary Disclosure Program and the Closing of an Offshore Loophole. Under previous iterations of the Voluntary Disclosure program, the IRS states that it has collected in excess of 4.4 billion in additional taxes, bringing a significant number of taxpayers back into the US tax system. The current program, announced in January of 2012, has penalty provisions ranging from 5% to 27.5 percent, depending on individual taxpayer circumstances.
IR-2012-5, Jan. 9, 2012 – http://www.irs.gov/newsroom/article/0,,id=252162,00.html
IR-2012-64, June 26, 2012 – http://www.irs.gov/newsroom/article/0,,id=258430,00.html
The IRS has released guidance on “2011 Reporting for 2010 Roth Rollovers and Conversions.” See http://www.irs.gov/retirement/article/0,,id=251832,00.html. While amounts transferred into Roth accounts are subject to income tax, these conversions are not subject to the 10% penalty tax for early withdrawals from qualified retirement plans. Unless elected otherwise, taxpayers converting Roth IRAs in 2010, “must report half of the taxable amount of these 2010 rollovers and conversions on your 2011 income tax return” and the other half in 2012.
As additional resources, see:
Publication 590, Individual Retirement Arrangements (IRAs)
Retirement Plans FAQs: IRAs
Topic 413 – Rollovers from Retirement Plans
Notice 2009-75, Rollovers from Employer Plans to Roth IRAs
Notice 2010-84, Guidance on In-Plan Roth Rollovers
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