Fearing unfair and unprecedented penalties if they fail to disclose their foreign bank accounts by August 31 under a new IRS regulation, several Indian American groups have sought the intervention of US President Barack Obama in the matter.
The Internal Revenue Service announced on February 8 a special voluntary disclosure initiative designed to bring offshore money back into the US tax system and help people with undisclosed income from hidden offshore accounts.
In a letter to Obama, they said that strict application of compliance with the law on citizens who are not aware of the law can lead to undue and irreparable distress.
The letter further states that the community is becoming aware of the new regulations on foreign accounts and is in full agreement that all citizens must be in compliance and pay all taxes due to the US government.
The Global Organization of People of Indian Origin, National Federation of Indian American Association, American Association of Physicians of Indian Origin and Asian American Hotel Owners Association under the aegis of a National Coordinating Council sent a letter on July 19
The joint letter affirmed the community's recognition of the necessity for the IRS to take needed actions and enact rules to track money flowing to terrorists, drug transaction and money laundering in safe havens outside the United States, a media release said.
The groups have requested that the IRS review and reconsider the rules towards more practical and prudent application.
The new voluntary disclosure initiative will be available through August 31.
While the United States has a rapidly increasing population of Indians and persons of Indian origin who are contributing significantly in all areas of the US economy and society, many in the Indian American community were not aware of the first voluntary disclosure program which ended in 2009, the letter said.
