California Voluntary Compliance Initiative II for “Abusive Tax Avoidance Transactions” and Offshore Financial Arrangements
California's “Voluntary Compliance Initiative II” (“VCI II”) was enacted March 24, 2011. Under the terms of this new initiative, qualified participating taxpayers that file the required amended returns and pay all tax and interest owing will receive relief from most California tax penalties for pre-2011 “abusive tax avoidance transactions” and underreported income from offshore financial arrangements. VCI II will run from August 1, 2011 to October 31, 2011. The attached External Alert summarizes this new initiative.