April 2, 2018 by Albert Dumaual
Offshore Voluntary Disclosure Program to End 9/28/2018
This article appeared as a CBMS Client alert on April 2, 2018
The IRS recently announced that it will close the 2014 Offshore Voluntary Disclosure Program (“OVDP”) on September 28, 2018. The announcement urges U.S. taxpayers with undisclosed foreign financial assets “to come forward now.” Foreign financial assets include foreign bank accounts, securities accounts, and foreign life insurance policies with a cash value. Taxpayers with an interest in a foreign corporation, partnership, trust, or estate may also be subject to various reporting requirements.
The OVDP provides a taxpayer with an opportunity to become compliant with the various international information reporting requirements. To complete the OVDP process, a taxpayer must comply with several submission requirements. At the end of the program, the IRS and the taxpayer enter into a closing agreement. The OVDP enables a taxpayer to resolve noncompliance issues while minimizing penalties and avoiding criminal exposure. Failure to become compliant may result in substantial penalties and possible criminal consequences.
Now is the time to enter into the OVDP, as this opportunity is rapidly evaporating.
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