Offshore Voluntary Disclosure Program to Remain Open Indefinitely


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.

Newsletter Articles

SPONSORED REPORT

States look to unclaimed property for revenue

State audits of abandoned and unclaimed property (AUP) have exploded in recent years. This report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.

DEDUCTIONS

Understanding the new Sec. 199A business income deduction

The new deduction allows certain business owners to keep pace with the significant corporate tax cut provided by the Tax Cuts and Jobs Act.