The Internal Revenue Service finalized the plan to close the 2014 Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. A taxpayer with intentionally undisclosed foreign assets or income could come forward to pay tax, interest, and penalties. The incentive to do this hides in protection from criminal prosecution. By alerting U.S. taxpayers now, the IRS gives some time to those who may want to come clean. You use OVDP after being involved in tax evasion and face stiff penalties only.
Important notice: The Streamlined Foreign Offshore Procedures is a different tax amnesty program. Fortunately, it’s still available to those who are tax non-compliant due to lack of awareness about tax obligations.
Contact us now if you want to file late back taxes and come into compliance with U.S. taxes. We offer 20 min. free phone tax consultancy to everyone who signs up before June 5th, 2018.
What are the 5 facts about OVDP?
- Since its’ initial launch in 2009, there were about 56,000 taxpayers who have used one of the programs to comply.
- Non-compliant taxpayers paid a total of $11,1 billion in back taxes, interest, and penalties.
- The peak of the OVDP happened in 2011 when approximately 18,000 people came forward.
- In 2017 only 600 disclosures happened, which reflects a steady decline in the number throughout the years.
- They modified OVDP program 4 times: 2009, 2011, 2012 and current 2014 version.
What about Streamlined Foreign Offshore Procedures?
If you are an American abroad, who wasn’t aware of their tax obligations, you can breathe a sigh of relief! Fortunately, you still have a penalty-free option to catch up with late taxes – the Streamlined Filing Procedures are still out there and available. It’s the best option for U.S. citizens living overseas to become compliant in a short time frame and pay little to no penalties and interest.
Nevertheless, the closure of OVDP rings the bell that the Streamlined Foreign Filing Procedures may not be open forever and we recommend non-compliant taxpayers to hurry up. We have a comprehensive yet easy to read the FAQ on filing late taxes, check it out!
If you are ready to start the process or have any questions, contact us now and we will get back to you within 24 hours.
