Important Information for Undisclosed Offshore Account Holders: IRS to End Offshore Voluntary Disclosure Program on September 28, 2018

March 20, 2018

 

The Internal Revenue Service plans to close the 2014 Offshore Voluntary Disclosure Program on September 28, 2018 and will start winding it down before then.  A separate program known as the Streamlined Filing Compliance Procedures will stay in place and will be available to eligible taxpayers. The IRS has advised that it may, however, end the Streamlined Filing Procedure at some point.

Options available for individuals with offshore undisclosed foreign accounts can be found here.

Information on the Streamlined Filing Compliance Procedures program can be found here.

The IRS said it would continue to use tools beside voluntary disclosure to discourage offshore tax avoidance,  including criminal prosecution.  Since 2009, the IRS’s Criminal Investigation unit has indicted 1,545 taxpayers for criminal violations related to international activities. Of those, 671 taxpayers were indicted on international criminal tax violations. According to IRS Criminal Investigation Chief Don Fort, “Stopping offshore tax noncompliance remains a top priority of the IRS.”

If you have undisclosed offshore accounts, seek the counsel of a professional who has handled OVDP cases since 2009, Jeffrey Callahan, JD, LL.M, CPA 973-530-9138 or [email protected]