(New) Offshore Voluntary Disclosure Procedures: Even though the IRS closed OVDP (Offshore Voluntary Disclosure Program), the IRS expanded the traditional VDP (Voluntary Disclosure Procedures). The expanded procedures include additional reporting and filing requirements for applicants with unreported offshore accounts, assets, investments and income. The program will benefit some taxpayers more than OVDP (especially those with…
Streamlined Filing Compliance Procedures
Streamlined Filing Compliance Procedures: When a person has undisclosed foreign accounts, assets, investment and/or income and has not previously disclosed to the IRS, they may qualify for the Streamlined Filing Compliance Procedures (SFCP). Under these procedures, a person may qualify for a reduced 5% title 26 miscellaneous offshore penalty — or even a penalty waiver….
Streamlined Foreign Offshore Procedures
Streamlined Foreign Offshore Procedures: When a non-U.S. Resident person is non-willful and has undisclosed offshore & foreign accounts, assets, investments and/or income, they may qualify for the Streamlined Foreign Offshore Procedures (aka SFOP). This is true, even if the person has not filed tax returns for one or more prior years. SFOP is also referred…
Streamlined Domestic Offshore Procedures
Streamlined Domestic Offshore Procedures: The streamlined program has two different options. The program for U.S. residents who were non-willful, previously filed tax returns, and not under audit is referred to as the Streamlined Domestic Offshore Procedures (SDOP). The domestic program is used to report undisclosed offshore & foreign accounts, assets, investments and/or income. SDOP is…
Reasonable Cause Statement for Offshore Disclosure
Reasonable Cause Statement for Offshore Disclosure: When a person is out of compliance for undisclosed foreign and offshore assets, accounts, investments and income, a person is considered “non-compliant.” While the IRS offers various amnesty programs, unless a person qualifies under the strict definition of a non-resident, and can show non-willfulness — they are almost always…