March 26, 2018
The IRS has announced it will end the Offshore Voluntary Disclosure Program (OVDP) on Sept. 28, 2018.
This program, which began in 2009 and was overhauled in 2014, provides U.S. taxpayers with foreign financial accounts a way to come forward and report their foreign accounts and the related income while minimizing potential civil penalties. A key feature of the program includes protection from criminal prosecution for failing to disclose foreign financial accounts and income. For this protection, taxpayers are assessed a one-time 27.5 percent penalty based on the maximum value of undisclosed foreign financial accounts.
The IRS is now announcing the end of this program to give taxpayers the next few months as a last chance to come forward with any undisclosed foreign financial assets and take advantage of this specific program before it ends.
Due to the ongoing enforcement of the Foreign Account Tax Compliance Act (FATCA), taxpayers are still coming forward filing delinquent foreign assets and international information returns. As a result, the IRS will continue offering the following programs to assist taxpayers who need to come into compliance:
Although the OVDP program will be closed on Sept. 28, 2018, taxpayers may still take advantage of these favorable procedures during the interim period. For more information or to see if you qualify for the OVDP or other programs listed above, contact your local Eide Bailly professional or a member of our International Tax Team.
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