The IRS has announced that the Overseas Voluntary Disclosure Program (OVDP), which has been around since March 2009, is about to be shut down permanently, effective September 28, 2018.
The OVDP Program has seen over 56,000 taxpayers come forward voluntarily, paying over $11 billion in back taxes interest and penalties. The Program has always been a great deal for people who actually hid assets offshore, failed to report taxable income, and then want to come clean and get back into compliance, especially because the IRS is hot on everybody’s trail thanks to the FATCA regime and other enhanced offshore investigative techniques.
The IRS wants to terminate the Program because participation has declined steadily, from a peak of 18,000 disclosures in 2011, to only about 600 disclosures in 2017. However, the IRS is expected to maintain its aggressive posture on offshore tax avoidance, and so now is the last clear chance for people to take advantage of the OVDP Program and avoid severe sanctions (including criminal prosecution) for dubious past conduct.
Don’t miss this last call to help taxpayers come into compliance under this de facto “amnesty” program that ends on September 28, 2018.