Levy, Mann, Caplan, Hermann & Polashuk, LLP Offers Offshore Voluntary Disclosure Program (OVDP) Assistance to Taxpayers with Undisclosed Foreign Assets

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The IRS began an open-ended Offshore Voluntary Disclosure Program (OVDP) in January 2012 which can allow Taxpayers to avoid potential criminal prosecution. Taxpayers are urged to take advantage of this program as it may end at any time.

David J. Polashuk

Taxpayers can avoid potential criminal prosecution

The IRS began an open-ended Offshore Voluntary Disclosure Program (OVDP) in January 2012. The IRS is offering Taxpayers with undisclosed income from offshore accounts an opportunity to become compliant with regard to their tax returns. By coming forward voluntarily and disclosing all foreign assets and any related undisclosed income, Taxpayers can avoid potential criminal prosecution. The 2012 OVDP requires that eligible Taxpayers file their most recent 8 years of unfiled or amended income tax returns along with any required Reports of Foreign Bank and Financial Accounts (FBARs), and make arrangements to pay all tax, interest, and penalties due. In addition, Taxpayers will have to pay, in lieu of all other penalties that may apply to their undisclosed foreign assets and entities, a miscellaneous offshore penalty equal to 27.5% (or in limited cases 12.5% or 5%) of the highest aggregate balance of foreign assets during the period covered by the voluntary disclosure.

Because the IRS may end the 2012 program at any time in the future, Taxpayers are urged to take advantage of this program as soon as possible.

Levy, Mann, Caplan, Hermann & Polashuk, LLP handles offshore voluntary disclosures for its clientele. Please contact the tax attorneys at our Firm today to discuss solutions to any issues involving undisclosed foreign assets and income or other tax controversy matters:

David J. Polashuk, Esquire (410) 998-2005 OR dpolashuk(at)lmcplaw(dot)com
Scott A. Schwartzberg, Esquire (410) 998-2006 OR sschwartzberg(at)lmcplaw(dot)com

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