West Virginia taxpayers participating in the IRS Offshore Voluntary Compliance Initiative are encouraged to amend their state income tax returns and pay all tax, interest, and penalties by October 15, 2003 to avoid state criminal prosecution.

The Offshore Voluntary Compliance Initiative targets individuals who deposit income into offshore bank accounts, then use payment cards issued by those banks to reclaim the unreported income. The IRS is offering these individuals the chance to surrender information and correct their tax returns in exchange for a waiver of federal civil fraud penalties and criminal prosecution.

The West Virginia State Tax Department will not pursue civil fraud penalties or criminal prosecution against West Virginia taxpayers who are allowed by the IRS to participate in this program, provided they correct their state returns and pay the additional tax, interest, and penalties by October 15, 2003. In addition, all information required by the IRS regarding offshore financial accounts must be disclosed to the State.

Those interested in taking advantage of this opportunity to amend their West Virginia State tax returns to include offshore-unreported income should contact Jeff Oakes of the Special Projects at (304) 558-8771 or by mail at West Virginia State Tax Department, Special Projects Unit, and P. O. BOX 229, CHARLESTON, WV, 25321-0229.

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