NOTE: The IRS is terminating the Offshore Voluntary Disclosure Program as of September 28, 2018. This information is still provided to assist those exploring their options and attempting to discern amidst information they have previously heard or read about. However, all taxpayers must use alternative methods of rectifying foreign asset and income reporting issues after September 2018
The Offshore Voluntary Disclosure Program (OVDP) was a voluntary program available to US taxpayers with exposure to potential criminal liability and/or substantial civil penalties due to willful failure to report their foreign assets or income or to pay all tax due in respect to those assets. It was a mechanism to help these individuals avoid criminal liability and seek reduced civil penalties for their omissions.
The OVDP was first introduced in 2009 and modified in 2011, 2012, and 2014. It was terminated in 2018. The program in its most recent form involved submitting a preclearance letter to the Criminal Investigation (CI) division of the IRS. Not all individuals were accepted at this stage, but if you were, you would receive a letter in approximately 45 days, at which time the taxpayer would need to submit detailed disclosures or foreign accounts, transfers, and related information.
Now that OVDP has ended, taxpayers who have willfully failed to comply with foreign asset reporting requirements will need to use alternative methods to bring themselves into IRS compliance.
Contact our firm today to discuss your Offshore Disclosure issues and how we can assist you.