What is OFAC Voluntary Self-Disclosure?
Disclaimer: The following is intended for general information only and not legal or tax advice.
Zaher Fallahi, Attorney At Law and Certified Public Accountant (CPA), focuses on Office of Foreign Assets Control (OFAC) Regulations regarding Iran, U.S. International Tax, Undisclosed Offshore Accounts and Foreign Gifts, and represents OFAC and Tax clients nationwide. Toll Free 1-(877) 687-7558 telephone appointments are available.
What is OFAC Voluntary Self-Disclosure (“VSD”)?
OFAC Voluntary Self-Disclosure (VSD) refers to a person’s voluntarily reporting of his or her OFAC violation. Generally, a voluntary self-disclosure, preferably in consultation with an OFAC attorney, substantially mitigates potential OFAC penalties and almost guarantees no criminal prosecution. This is also true with respect to unreported foreign bank accounts with cumulative balances in excess of $10,000, and voluntarily filing the required Foreign Bank Account Reporting (FBAR) in consultation with an international tax attorney. This is because of the long-standing policy of the U.S. Treasury encourages voluntary disclosures. The following are examples of situations where you need to enter OFAC Voluntary Self-Disclosure:
(1) Having a bank account or brokerage account in Iran with potential OFAC and FBAR violations;
(2) Engaging in a self-employment business in Iran with potential OFAC, FBAR and regular tax filing violations;
(3) Being employed in Iran; except for U.N. related organizations with violations similar to items 1 and 2 above; and,
(4) Hiring a law firm in Iran to provide you with legal services without OFAC specific license; and,
(5) Conducting other business activities such as farming or manufacturing in Iran.
Importation: Because OFAC VSD may entail violation of the U.S. International Tax Laws, entering OFAC VSD should be coordinated between your OFAC Attorney and an International Tax Attorney with expertise in Report of Foreign Bank and Financial Accounts (FBAR), Foreign Account Tax Compliance Act (FATCA) and Offshore Voluntary Disclosure Program (OVDP).
Zaher Fallahi, Attorney At Law, CPA, has defended clients before the IRS, IRS Criminal Investigation, FBI, and OFAC Enforcement Division (VSD).
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