The Internal Revenue Service (IRS) recently announced that it plans to close the Offshore Voluntary Disclosure Program (OVDP) on Sept. 28, 2018. In general, U.S. taxpayers have an obligation to disclose offshore accounts or assets. The OVDP allows taxpayers to voluntarily resolve their past noncompliance. Over $11.1 billion in back taxes, interest and penalties has been collected to date under the OVDP.
The IRS has many ways to identify offending taxpayers, including information from banks and other third parties, data analytics, prior disclosures and criminal investigations and prosecutions of defendants who became cooperators. Taxpayers who fail to disclose foreign assets and avoid taxes will continue to be targeted with other tools beside OVDP, including taxpayer education, whistleblower leads, civil examination and criminal prosecution.
U.S. taxpayers with undisclosed foreign financial assets do have other options beside the OVDP. A separate program, known as the Streamlined Filing Compliance Procedures will stay in place and be available to eligible taxpayers. In addition, qualified taxpayers may be able to use the Delinquent FBAR submission procedures or Delinquent international information return submission procedures.
We assist taxpayers who may have failed to adequately disclose their assets to minimize their potential financial or criminal exposure. If you maintain undisclosed offshore assets, feel free to contact us about your options.