Offshore Voluntary Disclosure
Gordon Law Expertise In Offshore Voluntary Disclosure Progra
Offshore Voluntary Disclosure Program: You Can Disclose Safely
Offshore Voluntary Disclosure Program: Pros
As we have mentioned above this program is relatively a new one and have become a more popular alternative to the other methods and procedures available for disclosure of foreign accounts. The reason behind taxpayer's interest in this program than some other relatively cheaper methods is the indemnity that comes with it. In more specific terms, offshore voluntary disclosure program's biggest benefit is its tendency to provide the taxpayers with a prevention against criminal prosecution. This is something, which is not the case with other methods.
Biggest Benefit in Offshore Voluntary Program
The OVDP, is an ideal one among options available. However, it comes with quite a higher rate in terms of penalties. In addition to the tax liability, taxpayers will also pay a 27.5% on account of the penalty and interest as well. Moreover, an applicant will also bear the cost of taking professional services. As it is a very technical thing and cannot be done without involving an expert.
Offshore Voluntary Disclosure Program: Salient Features
50% rate of penalty will be applicable in some circumstances
For normal cases, the rate of penalty is set at 27.5%
Penalties will be charged on basis of the maximum retained balance throughout the period that is covered in voluntary disclosure
The IRS calculates everything on basis of recent eight years
Illegal money cannot be legalized through this method
The IRS have stated policy that they can discontinue this program whenever they want
A taxpayer does not get an assurance that his application will be entertained
This program can provide you coverage against criminal prosecution for hiding your health to save tax
The penalties mentioned above are not negotiable
One who is already a subject of an ongoing prosecution cannot opt to use offshore voluntary disclosure option
Available Help & Support for Offshore Voluntary Disclosure Program
Likewise, for any tax related issue and problem substantial help is also available for taxpayers in relation with the OVDP. There are some expert attorney and tax professionals available to extend their support. In fact, the IRS has acknowledged the need of professional assistance. Some directives are available from IRS for both the professionals and their prospective clients.
Options other than Offshore Voluntary Disclosure Program
When it comes to the offshore voluntary disclosure of hidden wealth dumped in another company OVDP is just one among a few other options, which are,
Streamlined Filing Compliance
Delinquent FBAR Submission
Delinquent International Information Return Submission
In fact choosing, a method besides OVDP may cost you less because of penalties. However, the major problem lies in their incapability to prevent the taxpayers from being persecuted. That is the reason because of which most taxpayers prefers this option over another even if they have to pay a lot more than what they would be paying by going with a different mechanism.
In case if you are taxpayer with having an undisclosed wealth outside the country then, you should consider its legalization on an immediate basis. The IRS loves money, and they keep watching for cases of noncompliance. Therefore, it is an utterly wise thing to take the advantage of Offshore Voluntary Disclosure program as it is a good option available, and we do not know for how much time.