The IRS Recently announced 13 “campaigns” they will be targeting as part of a new audit strategy. One of those areas is OVDP, specifically those who have been declined from the program, or voluntarily withdrew after starting the process.
OVDP, or the Offshore Voluntary Disclosure Program was instituted approximately 7 years ago. It is a voluntary disclosure program specifically designed for taxpayers with exposure to potential criminal liability or substantial financial fines and penalties due to a willful failure to report foregin financial assets and pay all tax due in respect to those assets.
New IRS Audit Campaign Focuses on Offshore Assets
This new IRS audit campaign is focusing on situations where taxpayers that have sought to enter the Offshore Voluntary Disclosure Program (OVDP) have been either denied access to OVDP or have withdrawn from OVDP. With a number of very old offshore cases still unresolved, this campaign appears to be the first formal effort to deal with rejected OVDP cases in an expressly coordinated manner. Taxpayers who fall into either of the categories above should obviously take action. If you would like to discuss your options. please contact our office today.