When U.S. citizens have undisclosed bank accounts overseas, they can evade paying taxes on the money. The Internal Revenue Service has focused on offshore enforcement efforts. In January of 2012, the IRS began an open-ended offshore FBAR voluntary disclosure program, known as OVDP due to the success of similar initiatives in 2009 and 2011. The 2012 program has no set due date, but may end or change at any point in the future.
The offshore FBAR voluntary disclosure program offers taxpayers with undisclosed income in offshore accounts to be current with tax returns, as well as a uniform penalty structure for taxpayers who voluntarily report any foreign accounts and/or assets which produced income that was previously unreported.
For taxpayers who have undisclosed overseas, the offshore FBAR voluntary disclosure program is an IRS tax settlement option that should strongly be considered. By making a voluntary disclosure taxpayers avoid large civil penalties, as well as avoid the possibility of criminal prosecution. Taxpayers who do not apply for OVDP risk being detected by the IRS. The IRS is serious about taxpayer who evading tax and are active in discovering identities of individuals with undisclosed accounts. If a taxpayer decides not to voluntarily disclose their hidden accounts, the IRS has the ability to impose substantial penalties including fraud and foreign information return penalties.
In order to qualify for tax settlement the offshore FBAR voluntary disclosure program, taxpayers have to:
The offshore FBAR voluntary disclosure program is the best IRS tax settlement option for taxpayers with undisclosed accounts overseas. Taxpayers should consult with an experienced New York tax attorney when moving forward with the OVDP process to make sure that they qualify for tax settlement with this program. Unfortunately this tax matter is never resolved quickly, and with so many requirements to participate, experienced and knowledgeable help is only beneficial to the applicant.
Our New York tax law firm offices are located in New York State but we are able to help you in any state across the country. We can work with you no matter where you live. Mr. Hart is licensed to deal with the IRS in every state in the entire country.