On June 18, 2014, the IRS announced major changes to the OVDP, including a major expansion of the so-called Streamlined Program and an increased penalties for taxpayers who held accounts at banks that are under criminal investigation.  Taxpayers who are willing to certify that their past non-compliance was not willful can avoid the offshore penalty altogether if they live overseas.  Residents of the U.S. face a 5% penalty.  Taxpayers who are not willing to certify that they were not willful can still enter the OVDP under the 27.5% penalty regime unless they are declaring accounts at one of the banks that the U.S. government has publicly identified as being under criminal investigation.  Such taxpayers face a 50% FBAR penalty.  The IRS has dubbed the modified program the 2014 OVDP and has released guidance, here.