First in 2009, and again in 2011 and 2012, the IRS initiated the Offshore Voluntary Disclosure Program (OVDP), which is designed to encourage taxpayers with undisclosed foreign accounts to disclose all offshore accounts, bring themselves into full compliance with federal tax law, and reduce their exposure to criminal penalties that could flow from willful violation of the law. The most recent version of this program is an extension of the 2012 initiative. Referred to by the shorthand “2014 OVDP,” it makes significant alterations to the 2012 program, including increasing the miscellaneous... Read More
Most nations do not require their citizens to pay income taxes on money earned in another country. The United States, however, is different. Americans who fail to pay the applicable taxes on assets stored in an offshore bank account can face serious financial penalties. Currently, the Internal Revenue Service’s Offshore Voluntary Disclosure Program (OVDP) levies a 27.5 percent penalty for willful noncompliance with the nation’s tax laws. As part of recent changes to the OVDP, U.S. citizens who... Read More
It has grown increasingly difficult to evade the reach of IRS rules by concealing assets in offshore accounts. However, people who have kept their assets overseas have the opportunity to participate in the Offshore Voluntary Disclosure Program (OVDP) and avoid the threat of criminal prosecution for their non-compliance.
The OVDP should be especially attractive for people who failed to comply with IRS... Read More
Last week, the IRS made a variety of changes to its Offshore Voluntary Disclosure Program (OVDP). These modifications are designed to give taxpayers incentives to disclose foreign accounts in greater numbers, a trend that already has been observed. People who comply with the OVDP need not fear the threat of criminal prosecution if they disclose any overseas accounts and pay the required penalty. This program was reinitiated two years ago following earlier... Read More
Recently, the IRS announced additional streamlined procedures and changes to its Offshore Voluntary Disclosure Program, in order to make it easier for taxpayers to satisfy their obligations regarding reporting offshore accounts. These changes do not result in an entirely new OVDP program; rather, they are a continuation of the previous OVDP programs introduced in 2009, 2011 (OVDI), and 2012. The IRS announcement contains expanded streamlined provisions for OVDP as well as changes to the existing 2012 OVDP program already in place.
Purpose of the Offshore... Read More