If you have assets in foreign countries, you have certain reporting obligations with regard to the IRS. Unfortunately, some people with offshore accounts fail to report or pay taxes on assets held in these offshore accounts. The IRS has indicated that it intends to continue seeking out these non-compliant taxpayers. For those willing to come forward on their own, the Offshore Voluntary Disclosure Program may be a good option.
6 Reasons to Consider the Offshore Voluntary Disclosure Program
The Offshore Voluntary Disclosure Program is a way for taxpayers with offshore accounts to bring themselves into compliance with the IRS and the U.S. tax laws. Reasons to consider taking advantage of this program include the following:
- Disclosing will allow you to become compliant.
- Disclosing will allow you to avoid substantial civil penalties.
- Disclosing will generally eliminate the risk of criminal prosecution for all issues relating to tax noncompliance and failing to file reports with the IRS.
- Disclosing provides you with an opportunity to calculate the total cost of resolving all offshore tax issues.
- The IRS has indicated its intent to continue seeking out and prosecuting people with offshore accounts who are not in compliance with U.S. tax laws.
- Information about offshore accounts is increasingly becoming available to the IRS due to tax treaties, submissions from whistleblowers, and other sources. This is making it increasingly difficult to avoid detection by the IRS.
Of course, every situation is unique, so deciding whether to participate in this program is best done with the assistance of a knowledgeable legal professional. We can help. We encourage you to learn more about the experiences of our past clients by checking out our client testimonials today.