By: Coleman Jackson, Attorney and Certified Public Accountant
September 22, 2018
The IRS is closing down the Offshore Voluntary Disclosure Program on September 28, 2018. This voluntary international tax compliance program was designed to help people, organizations and business entities hiding money, accounts and assets overseas to get current and come into compliance with U.S. tax laws voluntarily under a reduced civil penalty structure and leniency with respect to potential criminal prosecution. This program that has been in effect since about 2009 and extended in 2012 and again in 2014 is ending in about 7 days.
Non-compliant taxpayers with offshore accounts and assets have seven days to request permission to enter into the Offshore Voluntary Disclosure Program. Entry into the program begins with submission to the IRS Criminal Division a request for preliminary consideration for disclosure under the OVDP program. If the prelim request is granted, the disclosure, review, approval and closing process takes about 12 to 18 months. Taxpayers who may have committed criminal international tax evasion or are holding undisclosed offshore accounts risk being reported by their offshore banking or financial institution since these overseas institutions are required to either directly or indirectly report United States Citizens and/or Green Card Holders with accounts in their financial institutions to the Internal Revenue Service.
Once the OVDP expires on September 28, 2018, the IRS might implement a replacement program or some procedure or method for non- compliant taxpayers to come into international tax compliance, but as of yet, the IRS has not announced any offshore accounts leniency programs or procedures that will replace the expiring OVDP. Word to the wise— apply for the OVDP before it expires on September 28, 2018.
This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader. You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.
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