In September of 2018, the IRS wound down its Offshore Voluntary Disclosure Program (OVDP). This successful program encouraged taxpayers to voluntarily report noncompliant offshore holdings that might otherwise become the target of an IRS criminal tax investigation.
Following earlier campaigns to encourage voluntary disclosure of unreported offshore assets, the original OVDP was initiated in 2012, modified in 2014, and ended in 2018. The IRS has noted previously that the program saw more applicants during its early years as taxpayers came into compliance with offshore tax regulations.
The memorandum, issued by Kristen Wielobob, the Deputy Commission for Services and Enforcement, provides guidance to the IRS on updated procedures for handling voluntary disclosures.
The new guidelines initiate new procedures and alter some features of previous disclosure programs. Just a few points of the memorandum include:
This more rigorous program continues to offer taxpayers the opportunity to regain compliance, pay taxes and penalties, and possibly avoid an IRS criminal investigation. Given heightened preclearance and disclosure requirements, along with the penalty structure, it is essential to work with a tax attorney experienced with IRS audits prior to submitting an application for preclearance.
If you become aware that you are noncompliant with domestic or international tax reporting, or other tax issues, contact us at Robert J. Fedor, Esq., LLC for a confidential consultation. With offices in Cleveland, Ohio, and Chicago, Illinois, we deliver aggressive legal representation to resolve your tax concerns. Contact us or call 800.579.0997 today.