New Updated OVDP Voluntary Disclosure Practice.: 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 limited international information return reporting issues), but may penalize other taxpayers more, in accordance with the IRM (Internal Revenue Manual).
Voluntary Disclosure is not the same as Streamlined. With VDP a person may receive protection from criminal prosecution, which is not available under the Streamlined Procedure.