Voluntary Disclosure Tax Amnesty

Voluntary Disclosure Tax Amnesty: There are several Voluntary Disclosure Tax Amnesty options for Taxpayers. Both the IRS and state government agencies have tax amnesty programs  in place — along with other voluntary disclosure programs outside the United States in countries such as Italy.

In general, tax amnesty refers to the process of voluntarily getting into compliance for unreported income an undisclosed accounts & assets.

Depending on the nature and extent of the underlying noncompliance, the matter maybe domestic, foreign, or a hybrid of both.

In recent years, voluntary disclosure tax amnesty for offshore related matters – especially foreign accounts compliance has become a key enforcement priority.

By submitting to the IRS voluntary disclosure tax amnesty program, a taxpayer can usually avoid a criminal probe, an Internal Revenue Service special agent investigation and/or criminal prosecution for offshore or domestic related issues.

We will summarize 2020 IRS Amnesty, along with recent changes in voluntary disclosure tax compliance.

What are the Different Types of Amnesty Programs

Voluntary disclosure tax amnesty can be broken down into two main subsections:

  • Domestic Voluntary Disclosure Tax Amnesty; and
  • Offshore Voluntary Disclosure Tax Amnesty
IRS Amnesty: Changes in Voluntary Disclosure Tax Compliance

IRS Amnesty: Changes in Voluntary Disclosure Tax Compliance

Domestic Voluntary Disclosure Tax Amnesty

With domestic voluntary disclosure tax amnesty, a person is seeking to get into IRS compliance for domestic tax issues.

Generally, this will involve issues such as unreported income, overstated deductions, and/or falsifying businesses that may not exist. When it involves businesses, it may also include employment tax, sales tax, and other tax related issues, including withholding.

In recent years, a common issue has become high-income earners being goaded on by unethical tax practitioners to create false businesses in order to claim phantom deductions that never existed, and artificially reducing the taxpayer’s tax liability.

Offshore Voluntary Disclosure Tax Amnesty

Offshore voluntary disclosure tax amnesty typically refers to the non-reporting for prior year offshore, accounts, assets, investments and income.

When it comes to the Internal Revenue Service, there are many different avenues available to the taxpayer depending on whether they willful or non-willful, and whether or not they filed timely tax returns or not.

Since the inception of voluntary disclosure the IRS has been steadily increasing the penalty when it comes to offshore voluntary disclosure tax amnesty programs – and the Internal Revenue Service has stated — as recent as late 2019 — that the service is considering terminating some of the more popular voluntary disclosure tax amnesty programs, such as the Streamlined Offshore Program.

Government organizations can modify, change or cease voluntary disclosure tax amnesty – and generally they do not have to provide any specific time frame.

Therefore, If you are considering getting into compliance, you should speak with experience counsel.

Golding & Golding: About our International Tax Law Firm

Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.

Each case is led by a Board-Certified Tax Law Specialist with 20-years experience, and the entire matter (tax and legal) is handled by our team, in-house.

*Please beware of copycat tax and law firms misleading the public about their credentials and experience.

Less than 1% of Tax Attorneys Nationwide Are Certified Specialists

Sean M. Golding is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.

Recent Golding & Golding Case Highlights

  • We represented a client in an 8-figure disclosure that spanned 7 countries.
  • We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
  • We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
  • We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
  • We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.

How to Hire Experienced Offshore Counsel?

Generally, experienced attorneys in this field will have the following credentials/experience:

  • Board Certified Tax Law Specialist credential
  • Master’s of Tax Law (LL.M.)
  • Dually Licensed as an EA (Enrolled Agent) or CPA
  • 20-years experience as a practicing attorney
  • Extensive litigation, high-stakes audit and trial experience

Interested in Learning More about Golding & Golding?

No matter where in the world you reside, our international tax team can get you IRS offshore compliant. 

Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.