Offshore Voluntary Disclosure

Gordon Law Group offers an Offshore Voluntary Disclosure

Big image

Offshore Voluntary Disclosure Program: Bring your Wealth Back

The Offshore Voluntary Disclosure Program is an important program the IRS is offering to a certain class of taxpayers today. This program deals with the Americans Nationals, who are maintaining one or multiple foreign accounts outside the United States. According to the US Tax Laws, it is mandatory for all to disclose their foreign accounts and assets. Eventually the disclosure of these accounts and assets will provoke tax liabilities as well. Therefore, some people overlook this mandatory procedure to minimize their tax liabilities. However, with the passage of time and growth in the offshore assets, condition starts getting more complicated. In fact, detection risk also multiplies with the time. There was a time, when such taxpayers had no other choices available other than making “quiet disclosures” by filing amended tax returns.


Why we have Offshore Voluntary Disclosure Program


The IRS started this program for the first time in year 2009. The declared purpose of running this program is to provide taxpayers with a chance to declare their offshore accounts and financial assets safely. Here the word safely represents to a very important benefit that comes with OVDP and we will be talking about it in the next passage. Thus, OVDP is a useful initiative for many who want to clean themselves. In light of facts, we can say that there was a gap in IRS system regarding to this matter, which now is not a case as we have this comprehensive and adequate program available.


Offshore Voluntary Disclosure Program -The Greatest Benefit


As we, all know that, failing to provide IRS with all the relevant financial information to save tax is a prosecutable crime. In past taxpayers, even willing to fulfill this obligation were used to be in a very awkward situation. On the one hand, a continuous threat of detection kept them disturbed while on other hand their filing of amended tax returns would triggers the IRS for further investigation. After the inception of OVDP, this problem no longer exists. This relatively newer program is capable of providing you with a legal coverage. Thus, those who are using this option for disclosing their legal, financial assets located somewhere else can feel safe in terms of criminal prosecution. In fact, there are a few other options available, to fulfill this obligation but they fall short in terms of the indemnity.


Offshore Voluntary Disclosure Program – Penalty Rate


Whenever a taxpayer opts to declare his or her offshore financial accounts by means of the OVDP, he agrees to pay all of his tax liability, interest and the penalties as well. For many, the flat nature of the penalty rates are better and for many it is not. However, this program is running in this way. In fact, a taxpayer may become a subject of even higher rates in a few scenarios. Right now the offshore penalty is set at 27.5% of the highest amount maintained throughout the period included. As we have mentioned above, this already higher rate can become even worse for those who found guilty of taking support from an already under investigation entity or a professional. Here it is important to mention that the IRS will look into the matter differently if the applicant can prove that he has not kept his foreign assets unreported willfully. This is the point where the role of a tax professional becomes important.


The Role of Professional in Offshore Voluntary Program


The IRS itself has acknowledged the importance of a professional's role. In fact, it is almost impossible for an individual to understand and act upon all the typical kind of instructions, necessary to file a qualified application. Therefore we can say that seeking a professions is something inevitable and you should consider a competitive and experienced tax attorney to increase your chances of success while moving ahead with the offshore voluntary disclosure program.


Offshore Voluntary Disclosure