As we previously reported, the Internal Revenue Service (IRS) will close the Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. The OVDP was launched in 2009 to encourage compliance with foreign asset reporting, allowing U.S. taxpayers a way to avoid criminal prosecution for failing to report foreign accounts. The program collected roughly $11.1 billion in back taxes, interest, and penalties from more than 56,000 participating taxpayers. The IRS noted that after the program ends, it will continue to make offshore tax avoidance a top priority.
The Streamlined Filing Compliance Procedures will remain in place as an option for taxpayers who might not have been aware of their reporting obligations. The IRS has warned, however, that it may end the streamlined procedures program at some point as well.
We have extensive experience helping taxpayers handle missed reporting obligations for offshore accounts. If you would like to learn more, please contact us.