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2014 Offshore Voluntary Disclosure Program

Posted by: Zaher Fallahi
Posted On: Aug 23, 2014

The IRS began an open-ended offshore voluntary disclosure program (OVDP) in January 2012 on the heels of strong interest in the 2011 and 2009 programs. The IRS may end the 2012 program at any time in the future.

The IRS is offering people with undisclosed income from offshore accounts another opportunity to get current with their tax returns. The 2012 OVDP has a higher penalty rate than the previous program but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk detection by the IRS and possible criminal prosecution.

This is a continuation of the program introduced in 2012 with modified terms, but for purposes of referring to this modified program, it may be referred to as the 2014 OVDP. The modifications are effective July 1, 2014. See below for links to both the original and modified program terms.

In addition to the OVDP, the IRS offers other options: http://zflegal.wpengine.com/blog/optionsavailableforustaxpayerswithundisclosedforeignfinancialassets-1

For assistance with disclosing your undeclared foreign bank accounts (offshore voluntary disclosure program, OVDP), report of foreign bank & financial accounts (FBAR), foreign account tax compliance act (FATCA), tax preparation, tax planning,  tax audit IRS representation, and the US treasury office of foreign assets control (OFAC),  contact Zaher Fallahi,  Los Angeles Tax Attorney, Los Angeles OFAC Attorney, Los Angeles Tax CPA, Los Angeles Dental CPA,  at (310) 719-1040 and Orange County Tax Attorney, Orange County OFAC Attorney, Orange County Tax CPA, Orange County Dental CPA, at (714) 546-4272 (Orange County) or e-mail: [email protected]