OVDP is Ending 9/28/18
The IRS is ending OVDP - the Offshore Voluntary Disclosure Program. If you have foreign assets and have not been reporting them to the IRS, it's imperative that you take action now. Please contact our office now to discuss your options. The initial consultation is free, and of course confidential.
OVDP Ending – Do You have Unreported Offshore Assets?
What is OVDP?
OVDP is program started by the Internal Revenue Service in 2014 that allows taxpayers to come forward and voluntarily disclose their foreign assets.
Taxpayers holding undisclosed foreign accounts and assets, including those held through undisclosed foreign entities, should consider making a voluntary disclosure because it enables them to:
Get into compliance with the IRS
Avoid substantial civil penalties
Generally eliminate the risk of criminal prosecution for all issues relating to tax noncompliance and failure to file FBAR's
Why You Should Consider OVDP
Taxpayers simply filing amended returns or filing through the Streamlined Filing Compliance Procedures do not eliminate the risk of criminal prosecution. Making a voluntary disclosure also provides the opportunity to calculate, with a reasonable degree of certainty, the total cost of resolving all offshore tax issues.
Taxpayers who do not submit a voluntary disclosure run the risk of detection by the IRS and the imposition of substantial penalties, including the fraud penalty and foreign information return penalties, and an increased risk of criminal prosecution.
The IRS remains actively engaged in identifying those with undisclosed foreign financial accounts and assets.
Moreover, increasingly this information is available to the IRS under tax treaties, through submissions by whistleblowers, and from other sources and will become more available under the FATCA and Foreign Financial Asset Reporting.
Criminal Charges You May Face for not Participating in OVDP
If you choose not to participate in OVDP, and are audited by the IRS, you may be subject to criminal charges. This includes possible criminal charges include tax evasion (IRC § 7201), filing a false return (IRC § 7206(1)) and failure to file an income tax return (IRC § 7203). Willfully failing to file an FBAR and willfully filing a false FBAR are both violations that are subject to criminal penalties under 31 U.S.C. § 5322. Additional possible criminal charges include conspiracy to defraud the government with respect to claims (18 U.S.C. § 286) and conspiracy to commit offense or to defraud the United States (18 U.S.C. § 371).
A person convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. Filing a false return subjects a person to a prison term of up to three years and a fine of up to $250,000. A person who fails to file a tax return is subject to a prison term of up to one year and a fine of up to $100,000. Failing to file an FBAR subjects a person to a prison term of up to ten years and criminal penalties of up to $500,000. A person convicted of conspiracy to defraud the government with respect to claims is subject to a prison term of up to not more than 10 years or a fine of up to $250,000. A person convicted of conspiracy to commit offense or to defraud the United States is subject to a prison term of not more than five years and a fine of up to $250,000.
Find Out About OVDP Today
We can help you with all of your OVDP and foreign account reporting questions. Time is running out on the Offshore Voluntary Disclosure Program. If you have assets offshore, now is the time to get into compliance with the IRS. Get peace of mind in knowing that all required forms have been accurately prepared and filed. Let us help you get you financial situation in order.