The Internal Revenue Service have announced that the 2014 Offshore Voluntary Disclosure Program (OVDP) will close on Sept. 28.
The OVDP has allowed US Taxpayers to voluntarily resolve their past noncompliance in respect of unreported foreign assets and tax returns. It provided a clear civil penalty framework and an assurance that no recommendation of criminal prosecution will be made to the Department of Justice for tax noncompliance and reporting issues related to an accepted voluntary disclosure.
The IRS’s acting commissioner, David Kautter, said in a statement “Taxpayers have had several years to come into compliance with U.S. tax laws under this program… All along, we have been clear that we would close the program at the appropriate time, and we have reached that point. Those who still wish to come forward have time to do so.”
The IRS said it would continue to use other methods to combat offshore tax avoidance, including taxpayer education, whistleblower leads, civil examination and criminal prosecution.
However, the Streamlined Filing Compliance Procedures for tax returns and Delinquent Return Filing Program for FBARs, will remain in place and be available to eligible taxpayers for the time being.
If you wish to discuss getting your US tax affairs up to date, please contact us on 01934 620011, or send us a message now.