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Offshore Voluntary Compliance Program Ends September 28, 2018.


The IRS is discontinuing the 2014 Offshore Voluntary Disclosure Program (OVDP) effective September 28, 2018. U.S. taxpayers with undisclosed foreign financial assets are encouraged to apply before the program ends.

The OVDP program allows U.S. taxpayers to voluntarily resolve past non-compliance related to unreported foreign financial assets and failure to file foreign returns/forms.   Important to note: The IRS will continue to hold taxpayers with undisclosed offshore assets accountable after the program closes.

Generally, OVDP participants are taxpayers who have willfully disregarded their tax compliance obligations and may be subject to criminal prosecution. By entering the OVDP, the risk of criminal prosecution is eliminated, although taxpayers are still subject to monetary penalties.

After the OVDP program ends, U.S. taxpayers can still come into compliance for unreported foreign financial assets and failure to file foreign disclosure forms under other programs the IRS offers, although, like the OVDP program, these disclosure initiatives may end at some point. Currently, the IRS offers the following options allowing taxpayers to comply with their tax filings:

  • Streamlined Filing Compliance Procedures
  • Delinquent FBAR Submission Procedures
  • Delinquent International Information Return Submission Procedures

Important to note: Taxpayers requesting participation in the streamlined filing procedure must not be currently under an IRS audit and their failure to file must have been non-willful. To review the options available for U.S. taxpayers with undisclosed foreign financial assets, click here or connect with your Berntson Porter tax advisor by calling 425.454.7990. We’re here to help!