What is Offshore Voluntary Disclosure?
Since 2009, the IRS has been offering taxpayers who have undisclosed foreign financial accounts the opportunity to “come clean” under its Offshore Voluntary Disclosure Initiative (OVDI). The OVDI program has been slightly revised over the last three years, but it basically allows certain taxpayers the opportunity to gain clearance from criminal prosecution and civil penalties by paying a one-time FBAR (Report of Foreign Bank and Financial Accounts) penalty based on the foreign account balances, as well as penalties for accuracy and failure-to-file based on the tax underpayment for the prior 8 years. The tax lawyers at Pearson Butler can guide you through your filing requirements and the programs available to resolve past delinquencies.
What are the benefits of using the Offshore Voluntary Disclosure Program?
Taxpayers with undisclosed foreign accounts or with undisclosed entities should consider making a voluntary disclosure because it enables them to become compliant, avoid substantial civil penalties and generally 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, as well as an increased risk of criminal prosecution. The IRS is actively engaged in discovering the identities of those with undisclosed foreign accounts. This information is increasingly available to the IRS under tax treaties and through submissions by whistleblowers, and this information will become more available as the Foreign Account Tax Compliance Act (FATCA) and Foreign Financial Asset Reporting (new IRC §6038D) become effective.
What Are the Filing Requirements?
The IRS has recently increased the reporting requirements for taxpayers with foreign accounts and assets. The IRS requires a variety of disclosure forms, including FBARs, Form 5471, Form 3520 and, Form 8938. The tax attorneys at Pearson Butler advise clients on their current obligations to file these forms and counsel clients on the avenues available to resolve past delinquencies with the best possible results.
Why Use PEARSON BUTLER Law for Offshore Voluntary Disclosure and Foreign Bank Accounts?
PEARSON BUTLER Law has Tax Lawyers who are experienced Offshore Voluntary Disclosure and Foreign Bank Accounts. In addition, PEARSON BUTLER Law offers additional tax services:
- Tax Court Litigation
- IRS Appeals
- IRS Audits
- Criminal Tax Defense
- Payroll Taxes
- Trust Account Taxes
- Offer in Compromise
- IRS Collections
- Installment Agreements
- Innocent Spouse Relief
- Offshore Voluntary Disclosure and Foreign Bank Accounts
- State Sales Tax Audits
- Tax Planning
- Nonprofit taxation and compliance
Contact an Offshore Voluntary Disclosure and Foreign Bank Accounts Tax Attorney Today
If you would like more tax information on Offshore Voluntary Disclosure and Foreign Bank Accounts, contact a tax attorney at PEARSON BUTLER Law now. Call (801) 495-4104 for a free initial consultation.