Breaking News: IRS Announces End to Overseas Voluntary Disclosure Program
Mar 19th 2018, 4:02 pm
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Breaking News: IRS Announces End to Overseas Voluntary Disclosure Program
I got this email today.
On Wednesday, March 14th the IRS announced that it is ramping down the Offshore Voluntary Disclosure Program (OVDP) and that the program will end on September 28th of this year.
This is significant news for a variety of reasons. The Voluntary Disclosure Program, in its various versions, has been in place since 2009. The programs have enabled US taxpayers to voluntarily resolve past non-compliance related to unreported foreign financial assets and failure to file foreign information returns.
When the initial program began in 2009, the IRS estimated there were over 6 million taxpayers with foreign assets that were not compliant with their US tax obligations. Since 2009 there have been only 56,000 taxpayers coming forward under these programs. While this is an insignificant number when compared to the total number of non-compliant taxpayers, the programs have brought in over $11 billion in back taxes, interest and penalties.
Offshore tax violations will continue to be a top priority for the IRS. With the international foreign account disclosure initiatives under FATCA, the cooperation of foreign governments, whistleblower leads, civil examinations, passport renewals and various other enhanced intelligence procedures, it is likely that a number of the 6 million non-compliant taxpayers will be found.
If you are a non-compliant taxpayer, or know of someone who is, time is running out to come forward and benefit from OVDP. It is unlikely the IRS will be all that understanding when dealing with offshore non-compliance in the future.
Fortunately, the Streamlined Filing Compliance Procedures, for taxpayers who might not have been aware of their filing obligations, will remain open - at least for the time being.
The full IRS announcement is on our blog.
Please feel free to email us or call on +44 20 7357 8220 to discuss your situation further.
On Wednesday, March 14th the IRS announced that it is ramping down the Offshore Voluntary Disclosure Program (OVDP) and that the program will end on September 28th of this year.
This is significant news for a variety of reasons. The Voluntary Disclosure Program, in its various versions, has been in place since 2009. The programs have enabled US taxpayers to voluntarily resolve past non-compliance related to unreported foreign financial assets and failure to file foreign information returns.
When the initial program began in 2009, the IRS estimated there were over 6 million taxpayers with foreign assets that were not compliant with their US tax obligations. Since 2009 there have been only 56,000 taxpayers coming forward under these programs. While this is an insignificant number when compared to the total number of non-compliant taxpayers, the programs have brought in over $11 billion in back taxes, interest and penalties.
Offshore tax violations will continue to be a top priority for the IRS. With the international foreign account disclosure initiatives under FATCA, the cooperation of foreign governments, whistleblower leads, civil examinations, passport renewals and various other enhanced intelligence procedures, it is likely that a number of the 6 million non-compliant taxpayers will be found.
If you are a non-compliant taxpayer, or know of someone who is, time is running out to come forward and benefit from OVDP. It is unlikely the IRS will be all that understanding when dealing with offshore non-compliance in the future.
Fortunately, the Streamlined Filing Compliance Procedures, for taxpayers who might not have been aware of their filing obligations, will remain open - at least for the time being.
The full IRS announcement is on our blog.
Please feel free to email us or call on +44 20 7357 8220 to discuss your situation further.
