The IRS has delayed the end date for the voluntary disclosure program for offshore accounts. Citing the potential interruptions caused (or likely to be caused) by Hurricane Irene as she trundles up the east coast, the IRS provided a reprieve for filing the required information or seeking a 90-day extension, from August 31 to September 9, for those making a 'good faith' effort to comply. The updated voluntary disclosure initiative information is available on the IRS website, here. The posting provides details about the program and the documents necessary to comply.
This second program requires participants to pay 25% of the highest amount in the account from 2003-2010, along with the back taxes, interest, and other penalties. Without the voluntary disclosure program, the penalty can easily be more than is in the account.