Whether a U.S. taxpayer with noncompliant offshore holdings should pursue the formal OVDP or should file remedial returns under the IRS voluntary disclosure practice is an issue that requires considerable professional judgment by the tax practitioner, particularly on the issue of ‘‘Willfulness.’’
This judgment must take into account all facts and circumstances, including all items of evidence, whether in the form of banking or tax-related documentation, third-party statements, or the taxpayer’s own statements.
Because the circumstances of taxpayers with non-U.S. investments vary widely, the IRS offers the following 4 options for addressing previous failures to comply with U.S. tax and information return obligations with respect to those investments:
- Voluntary Disclosure
- Streamlined Disclosure - Non-Resident Taxpayer and Resident U.S. Taxpayer
- Delinquent FBAR Submissions Procedures
- Delinquent International Information Return Submissions Procedures
Don't bury your head in the sand hoping your tax problems will go away! Take action NOW while you still have options!
It would behoove taxpayers worldwide, to review their tax-related structures, accounts and holdings, to ascertain whether it would make sense to consider a voluntary disclosure. This is especially the case for valued company management who may have undeclared assets in tax haven countries and for families and individuals about secret accounts or offshore business structures, which may be perceived as abusive.
Prudent Action NOW Could Pre-Empt
Potentially Serious Legal Trouble Down the Road!
Want to Know if the OVDP Program is Right for You?