The Landscape After OVDP

Although the Offshore Voluntary Disclosure Program (OVDP) officially ended in 2018, the need for taxpayers to disclose undisclosed offshore accounts remains critical. The IRS continues to encourage voluntary disclosure to ensure compliance and avoid severe penalties. Understanding the current options and taking proactive steps is essential for safeguarding your financial future. At Davis Law Firm, our experienced IRS tax lawyers provide expert guidance to help you navigate the available paths for voluntary disclosure.

The End of OVDP: What It Means for Taxpayers

The termination of the OVDP in 2018 marked a significant shift in how the IRS handles undisclosed offshore accounts. While the formal program is no longer available, the IRS has made it clear that it remains committed to identifying and penalizing taxpayers who fail to report foreign accounts. Key implications of the end of OVDP include:

• Increased Scrutiny: The IRS has ramped up efforts to detect non-compliance through enhanced data sharing and international cooperation.
• Continued Disclosure Opportunities: Although the formal program ended, options for voluntary disclosure still exist, allowing taxpayers to come forward and rectify past non-compliance.

Current Voluntary Disclosure Options

Taxpayers with undisclosed offshore accounts still have several options to achieve compliance and mitigate penalties. These include:

• Streamlined Filing Compliance Procedures: Designed for non-willful non-compliance, these procedures require the submission of amended tax returns for the past three years and FBARs for the past six years, along with a certification of non-willful conduct.
• Delinquent FBAR Submission Procedures: For those who have reported all income but failed to file FBARs, this option allows for penalty-free submission of late FBARs, provided there is a reasonable cause for the delay.
• Traditional Voluntary Disclosure: In certain cases, taxpayers may still use traditional voluntary disclosure methods to report previously undisclosed offshore accounts, particularly in situations involving willful non-compliance.

The Importance of Timely Disclosure

Taking prompt action to disclose undisclosed offshore accounts is crucial. Delaying disclosure can lead to:

• Severe Penalties: The IRS imposes substantial penalties for non-compliance, which can include fines amounting to 50% of the account balance per year of non-compliance.
• Criminal Prosecution: In cases of willful non-compliance, taxpayers may face criminal charges, resulting in significant legal costs and potential imprisonment.
• Increased Scrutiny: Failure to disclose can attract heightened scrutiny from the IRS, leading to audits and further investigations.

How Davis Law Firm Can Help

Navigating the complexities of post-OVDP disclosure requires expert guidance. At Davis Law Firm, our experienced IRS tax lawyers provide comprehensive support to ensure your disclosures are accurate and complete. Our services include:

• Personalized Assessment: We evaluate your specific situation to determine the best path for disclosure.
• Document Preparation: Our team assists in gathering the necessary documentation and preparing all required forms.
• Strategic Representation: We represent your interests during the IRS review process, addressing any inquiries or issues that arise.

The Urgency of Immediate Action

The IRS’s increased efforts to detect non-compliance mean that the window for voluntary disclosure may not remain open indefinitely. Acting promptly to disclose previously unreported accounts and income can significantly reduce penalties and protect you from the risk of criminal prosecution. Delaying action only increases the potential consequences and complicates the resolution of your tax issues.

Secure Your Financial Future with Davis Law Firm

Don’t let undisclosed offshore accounts jeopardize your financial stability. The experienced IRS tax lawyers at Davis Law Firm are here to help you navigate the complexities of post-OVDP disclosure and ensure full compliance with all reporting requirements. Serving Carrollton, Texas, and surrounding counties, we provide expert legal guidance to address your tax issues. Call us at (469) 436-8010 to schedule a consultation and take the first step towards resolving your tax problems today. Act now to secure your financial future with the trusted support of Davis Law Firm.