IRS announced on March 13, 2018, that it would dissolve its Offshore Voluntary Disclosure Program (OVDP). The OVDP allowed those facing criminal tax liabilities and civil penalties to voluntarily report foreign financial assets and income incurring these penalties to be excused. “Participation in the OVDP generally requires taxpayers (1) to provide certain required documents and tax forms, (2) pay tax and penalties, and (3) agree to cooperate with IRS and Department of Justice offshore enforcement efforts, if requested.” A taxpayer must also be preliminary accepted into the program by filling out a preclearance document consisting of “(1) taxpayer identifying information, (2) identifying information for the financial institutions where the taxpayer had foreign financial accounts, and (3) identifying information for all entities, if any, used by the taxpayer to hold undisclosed foreign financial accounts or assets.”
Though there is no clear-cut deadline in participation in the OVDP on the IRS’s frequently asked questions, it does appear that a Voluntary Disclosure Letter should be postmarked no later than September 28, 2018. To send that letter the taxpayer must first be precleared, so if participating in the program is a necessity, the taxpayer should contact their tax advisor as soon as possible.
See Krista Hartwell, IRS Announces End to Offshore Voluntary Disclosure Program, AmericanBar.org, June 2018.
