The Internal Revenue Service (IRS) has confirmed plans to close their Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. Since 2009, OVDP has allowed Taxpayers holding undisclosed foreign accounts and assets to make a voluntary disclosures. In exchange for their disclosure, Taxpayers avoided substantial civil penalties and generally eliminated the risk of criminal prosecution.
The IRS has reported a significant decline in the number of taxpayers participating in OVDP and increased awareness of reporting requirements as grounds for closing the program.
The IRS will continue to focus efforts on stopping offshore tax noncompliance and evasion through a network of agreements between the U.S. and partner counties, automatic third-party account reporting, and the issuance of John Doe Summonses.
Taxpayers who must disclose foreign financial accounts will still be able to do so using the Streamlined Filing Compliance Procedures. Streamlined Filing Compliance Procedures are still available to those taxpayers who failure to disclose foreign financial accounts was due to non-willful conduct.
If you have failed to report foreign financial accounts or foreign income speak call 1-877-220-7649 or complete our contact form to speak with a tax attorney.