Voluntary Disclosure Can Deter Criminal Investigations & Prosecutions

Voluntary Disclosure Can Deter Criminal Investigations & Prosecutions (Golding & Golding)

Voluntary Disclosure Can Deter Criminal Investigations & Prosecutions (Golding & Golding)

From 2009 to September 28, 2018, the IRS OVDI/OVDP program was in place. It was a great program for individuals, businesses or estates that had unreported foreign/offshore income, assets, investments and accounts — and were either willful, wanted to avoid an audit/criminal investigation, or had complex PFIC issues.

With OVDP, a person could submit previously unreported U.S./Domestic Income as well as foreign income, presuming they also had foreign income to disclose.

IRS Voluntary Disclosure (U.S. & Foreign Income)

Even though OVDP has ended, the traditional IRM (Internal Revenue Manual) voluntary disclosure program (and Streamlined Disclosure Programs) are still active — and can be used to disclose both foreign and domestic income. 

While the parameters for submitting to the IRM Voluntary Disclosure Program are not the same as they were for OVDP (and the penalty range can vary more than it could under OVDP (absent an opt-out) — it is still a much better deal to submit to voluntary disclosure, than to get caught by the IRS, and possibly subject to:

  • Penalties
  • Liens
  • Levies
  • Seizures
  • Passport Revocation
  • Criminal Investigation

IRS U.S and Offshore Enforcement Continues

The IRS continues to vigorously pursue both U.S. & Domestic tax evasion.

International, Foreign & Offshore Tax Evasion

When it involves offshore/foreign evasion, the key issues revolve around:

  • Foreign Accounts
  • Foreign Assets
  • Foreign Investments
  • Foreign Income
  • Foreign Business
  • Foreign Trust
  • FBAR
  • PFIC

*The DOJ recently celebrated their first FATCA Criminal Tax victory, which included the defendant unsuccessfully fighting extradition.

U.S. Tax Evasion

When it involves U.S. evasion, they key issues tend to revolve around:

  • Cryptocurrency
  • Structuring/Smurfing
  • Business Tax Fraud
  • Underreporting Business Income
  • Embellishing Deductions

IRS Voluntary Disclosure May Deter Prosecution

As provided by the IRS directly in the Internal Revenue Manual:

A voluntary disclosure will not automatically guarantee immunity from prosecution; however, a voluntary disclosure may result in prosecution not being recommended.”

Golding & Golding, A PLC

We have successfully represented clients in more than 1000 streamlined and voluntary disclosure submissions nationwide, and in over 70-different countries.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.

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