The Safety Net of Voluntary Disclosure

For taxpayers who have failed to report foreign bank accounts or other financial assets, the IRS offers voluntary disclosure programs. These programs are designed to encourage taxpayers to come forward and correct past tax and reporting failures. Participating in these programs can significantly mitigate penalties and reduce the risk of criminal prosecution. Understanding the benefits and navigating the complexities of voluntary disclosure is essential to protect your financial future. At Davis Law Firm, our trusted IRS tax lawyers are here to guide you through this crucial process.

What Are Voluntary Disclosure Programs?

Voluntary disclosure programs are initiatives by the IRS that allow taxpayers to voluntarily report previously undisclosed foreign financial accounts and correct any tax reporting discrepancies. The primary programs include:

• Offshore Voluntary Disclosure Program (OVDP): Although officially closed in 2018, similar initiatives continue to provide avenues for disclosure.
• Streamlined Filing Compliance Procedures: Designed for taxpayers whose failure to report foreign financial assets was non-willful.
• Delinquent FBAR Submission Procedures: For taxpayers who have failed to file required Foreign Bank Account Reports (FBARs) but are not under civil examination or criminal investigation.
• Delinquent International Information Return Submission Procedures: For taxpayers who have failed to file other international information returns.

Benefits of Participating in Voluntary Disclosure Programs

Participating in a voluntary disclosure program offers several key benefits:

• Penalty Mitigation: Voluntary disclosure can substantially reduce the penalties associated with unreported foreign accounts and undisclosed income. This includes avoiding the harshest penalties for willful violations.
• Reduced Risk of Criminal Prosecution: By coming forward voluntarily, taxpayers can often avoid criminal charges related to tax evasion or fraud.
• Peace of Mind: Resolving past tax issues through voluntary disclosure provides a sense of relief and financial clarity, allowing you to move forward without the burden of unresolved tax problems.

Navigating the Voluntary Disclosure Process

The process of voluntary disclosure involves several critical steps:

1. Assess Eligibility: Determine which voluntary disclosure program is most appropriate for your situation based on factors such as the nature of your non-compliance and whether it was willful or non-willful.
2. Gather Documentation: Collect all necessary financial records, including details of foreign bank accounts, income, and any previously unfiled or incorrectly filed tax returns.
3. Prepare and Submit Disclosure: Accurately complete all required forms and submit them to the IRS. This may include FBARs, amended tax returns, and other international information returns.
4. Respond to IRS Inquiries: Cooperate with the IRS during the review process, providing any additional information or documentation requested.

The Role of Experienced IRS Tax Lawyers

Navigating the voluntary disclosure process can be complex and daunting. The experienced IRS tax lawyers at Davis Law Firm provide comprehensive support to ensure your disclosures are accurate and complete. Our services include:

• Personalized Guidance: We offer tailored advice to help you understand your options and select the most appropriate voluntary disclosure program.
• Accurate Preparation: Our team assists in gathering necessary documentation and accurately completing all required forms, ensuring full compliance with IRS requirements.
• 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 unreported foreign accounts 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 past tax reporting failures jeopardize your financial stability. The experienced IRS tax lawyers at Davis Law Firm are here to help you navigate the complexities of voluntary disclosure programs 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.