The end of the OVDP does not mean the IRS is less interested in offshore compliance --- to the contrary, "The IRS remains actively engaged in ferreting out the identities of those with undisclosed foreign accounts with the use of information resources and increased data analytics," said Don Fort, Chief, IRS Criminal Investigation, in the IRS' initial announcement about the program's end. "Stopping offshore tax noncompliance remains a top priority of the IRS."
Taxpayers who missed the OVDP opportunity still have options available and should get into compliance as soon as possible. Some taxpayers may qualify for the IRS' streamlined filing compliance procedures. Eligibility criteria include:
- Being an individual taxpayer or the estate of an individual taxpayer (as opposed to a business entity);
- Certifying that the conduct causing the nondisclosure was not willful to evade taxes and the source of undisclosed assets was legal;
- Not currently being audited by the IRS;
- Paying previous penalties assessed for delinquent or amended returns filed "quietly"; and
- Possessing a valid Taxpayer Identification Number.
If your client doesn't qualify for the streamlined program, there are still options available, such as participating in the IRS' traditional Voluntary Disclosure Programs. We have helped hundreds of taxpayers around the United States and abroad with their tax compliance matters, and we are here to help you and your clients, too.
We will continue to provide updates as we learn more about the future of foreign account compliance options.
