Offshore Voluntary Disclosure

Gordon Law Expertise In Offshore Voluntary Disclosure Progra

Big image

Offshore Voluntary Disclosure Program: You Can Disclose Safely

The Offshore Voluntary Disclosure Program is relatively a newer initiative taken by IRS. The basic function of this program is to bring unreported foreign accounts that belong to taxpayers enrolled with the IRS. This program was offered back in 2009 for the first time. The original version of the OVDP has undergone through manipulation several times and its version applicable today is a derivative of one that was introduced in 2012. So far, thousands of individuals and entities have taken this option to report and disclose their foreign accounts that they kept hidden.

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.


Conclusion


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.


Offshore Voluntary Disclosure