The Offshore Voluntary Disclosure Program, OVDP, which provided U.S. taxpayers the opportunity to voluntarily comply with IRS tax requirements surrounding foreign financial assets is being phased out. The IRS announced the program will close September 28, 2018.
The IRS is urging taxpayers with undisclosed foreign financial assets to take advantage of the program and come into compliance before the closing deadline.
According to the IRS, since the OVDP’s initial launch in 2009, more than 56,000 taxpayers have used one of the programs to comply voluntarily. All told, those taxpayers paid a total of $11.1 billion in back taxes, interest, and penalties. The planned end of the current OVDP also reflects advances in third-party reporting and increased awareness of U.S. taxpayers of their offshore tax and reporting obligations.
Full details of the options available for U.S. taxpayers with undisclosed foreign financial assets can be found on IRS.gov.
Keiter continuously monitors national and international tax issues and proposed tax law changes that may affect your international business. We partner with you to successfully navigate tax changes and develop tax and financial strategies to increase cash flow.
In working with you, our tax professionals will leverage their international tax experience and knowledge to provide personalized services that meet your corporate tax compliance requirements.
Our international tax compliance services include:
- Coordination and preparation of US income tax returns (federal and state)
- Reporting for Foreign Accounts – Form 114, Report of Foreign Bank and Financial Accounts
- Estimated Tax Planning
- FACTA and Other Cross Border Reporting and Withholding
- Foreign Ownership Reporting and Compliance – Forms 5471, 5472, 8865, 8858
- Federal and State Tax Credits
- Executive Tax Reporting and Planning
Learn more about our international tax services.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.