In today’s world, especially after the recent financial meltdown, understanding the human emotions and sentiments before investing money is capturing interests of researchers and advisers. We too continue our long love with Behavioral Finance and present you some interesting findings by researchers in this area.
Click here to learn more about:
- Intuitive and Reflective Minds
- Investor Paralysis
- Lack of Investor Discipline
- Regaining and Maintaining Trust
- Overcoming Loss Aversion
- Overcoming Procrastination
- The Ulysses Strategy
The IRS announced the second voluntary disclosure initiative for undisclosed foreign financial accounts available through August 31, 2011.
Individuals are required to submit Form TD F 90-22.1, the Report of Foreign Bank and Financial Accounts (FBAR), on or before June 30 of each year to report any financial interest in or signature authority over foreign financial accounts maintained during the previous calendar year if the aggregate value of those accounts exceeded $10,000. Taxpayers who fail to file FBARs could potentially face both criminal prosecution and civil penalties of up to 50 percent of the total balance of the foreign accounts for each annual violation. While steadily increasing the risk that taxpayers with undisclosed foreign financial accounts will get caught, the IRS continues to encourage taxpayers to come forward voluntarily to report prior noncompliance.
The first special voluntary disclosure program for offshore accounts closed on October 15, 2009, with over 15,000 taxpayer participants. The IRS decided to open a second disclosure initiative following continued interest from taxpayers with foreign accounts, including approximately 3,000 taxpayer submissions after the official close of the 2009 program. Under the 2011 initiative, individuals are subject to a penalty of up to 25 percent of the amount in the foreign bank accounts in the year with the highest aggregate account balance between 2003 and 2010. Some taxpayers will be eligible for 5 percent or 12.5 percent penalties. Participants also must pay back taxes and interest for up to eight years, along with accuracy-related and delinquency penalties. If a taxpayer makes a timely, truthful and complete disclosure prior to the deadline, the IRS will not recommend criminal prosecution.
We strongly encourage any U.S. taxpayers with undisclosed foreign accounts to consider participation in this disclosure initiative promptly. (Source: IRS.gov and Kattenlaw.com)
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