Offshore Voluntary Disclosure Program to remain open indefinitely

By Sally P. Schreiber, J.D.

In a news release reiterating its focus on taxpayers who hold money offshore (IR-2015-09), the IRS stated that it intends to keep its Offshore Voluntary Disclosure Program (OVDP) open until it announces otherwise. The OVDP was restarted in 2012 after earlier time-limited programs had closed.

Since the first program, which began in 2009, the IRS has received 50,000 disclosures and collected more than $7 billion. In addition, the IRS has conducted both civil and criminal proceedings apart from the OVDP that have produced large amounts of civil and criminal penalties.

The IRS reiterated its commitment to pursuing taxpayers who hide assets overseas all over the world. Many taxpayers have been identified by the IRS as evading U.S. taxes by hiding income in offshore banks, brokerage accounts, or nominee entities. Other taxpayers have used foreign trusts, employee-leasing schemes, private annuities, or insurance plans for the same purpose. The IRS uses information from its investigations to work with the U.S. Department of Justice in criminally prosecuting these taxpayers.   

Sally P. Schreiber ( sschreiber@aicpa.org ) is a JofA senior editor.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.