Offshore Voluntary Disclosure

With the 2011 Offshore Voluntary Disclosure Initiative (“OVDI”) closed, many U.S. citizens, green card holders, visa holders and other residents, with undisclosed overseas accounts, wrestle with whether to disclose their foreign bank account(s) and other foreign financial activity. Others gamble that the IRS will never discover, or overlook, their offshore accounts, including those who have filed so-called “quiet disclosures” in the hopes that they will slip through the IRS system and avoid penalties associated with voluntarily disclosure through IRS OVDI/OVDP programs (many taxpayers who participated in the programs have received their tax bills or will shortly). There is little or no room to negotiate OVDI/OVDP taxes, penalties and interest in lieu of potential criminal prosecution.

We currently represent numerous OVDI/OVDP participants, and constantly keep them abreast on any developments (please e-mail info@moskowitzllp.com if you would like to receive our free e-newsletter). For instance,

• Program participants may wish to Opt-Out (or you may have done so already). It is important to carefully consider your case and obtain legal advice from your tax attorney because the irreversible decision to opt out can be pricey. All potential civil penalties are on the table, and so is a full audit. However, the IRS will not criminally prosecute because of an opt out.
• Some taxpayers are forging ahead and pursuing a case before District Court. (Attorney add importance language)
• Some are pursuing class-action lawsuits against the banks. (Attorney add importance language)
• The IRS implementation, and consequences, of these programs concerns tax attorneys across the nation. (Attorney add importance language)

Voluntary Disclosures of Foreign Financial Account and Related Matters After OVDI 2011

The IRS has posted contact information for persons desiring to make a noisy voluntary disclosure, or one when the taxpayer must contact the local IRS CI office. The notice states: Tax professionals or individuals who want to make a voluntary disclosure, not covered by the 2011 Offshore Voluntary Disclosure Initiative, may contact an IRS criminal investigator at the numbers below.
There may be benefits to participating in the traditional voluntary disclosure program if you have failed to comply with tax filing and payments/compliance in the past. Consider seeking tax advice and representation to help craft the best possible strategy before making any disclosure to the IRS or any government agency.

also see, 2012 Offshore Voluntary Disclosure Program; One Size Does Not Fit All