Hiding Money or Income Offshore on IRS Tax Scam “Dirty Dozen” List for 2015 Filing Season and OVDP to Remain Open Indefinitely
In a recent news release, the IRS announced that the most successful amnesty program in its history, the Offshore Voluntary Disclosure Program (“OVDP”), will remain open for an indefinite period of time.
The IRS also insisted that it will continue to aggressively work to stop offshore tax evasion. In fact, hiding money or income offshore is on the IRS’s “Dirty Dozen” list of tax scams for 2015.
Taken together, these announcements highlight the importance of seeking professional advice on reporting income from previously undisclosed foreign accounts.
The experienced international tax lawyer at Columbus, Ohio-based Porter Law Office, LLC represents U.S. taxpayers residing in the U.S. and abroad with voluntarily disclosing offshore assets to the IRS. Porter Law Office, LLC will help you analyze the seriousness of your situation and guide you to the best possible resolution at the least overall cost.
How Long Will the OVDP Remain Open?
In the news release, the IRS officially stated that the OVDP will remain open for an “indefinite period until otherwise announced.” Previously, the IRS stated on its website that the “IRS may end the 2012 (offshore voluntary disclosure) program at any time in the future.”
It is difficult to discern the difference between the IRS’s new statement that the OVDP will remain open indefinitely until otherwise announced and the IRS’s previous statement that the OVDP may end at any time in the near future. We hope the IRS will clarify its position.
IRS Committed to Stopping Offshore Tax Evasion
The IRS also insisted that it will continue to use resources to stop offshore tax evasion. In fact, since the first OVDP opened in 2009, there have been more than 50,000 disclosures and the IRS stated that it has collected more than $7 billion from the offshore voluntary disclosure program.
The IRS needs these funds and has made it clear that it will continue to pursue offshore tax cheats:
Even though the IRS has faced several years of budget reductions, the IRS continues to pursue cases in all parts of the world, regardless of whether the person hiding money overseas chooses a bank with no offices on U.S. soil. IR-2015-09 ¶ 3.
The IRS is spending money in the offshore tax avoidance enforcement for one reason: it makes money.
How the IRS Investigates Offshore Tax Avoidance
In the news release, the IRS shed some guidance about how it investigates taxpayers who hide income offshore. When the IRS investigates an offshore tax case, it gains access to account information for other taxpayers. And, the IRS uses this information.
It uses this information to pursue taxpayers with undeclared accounts, banks and bankers suspected of helping taxpayers hide assets offshore, and the IRS works closely with the Department of Justice (DOJ) to prosecute tax evasion cases.
Making a Voluntary Disclosure
Last summer, the IRS amended its offshore voluntary disclosure program and expanded its streamlined filing compliance procedures to provide taxpayers with better options for making voluntary disclosures.
If you have undisclosed offshore assets, you should strongly consider making a voluntary disclosure under either the offshore voluntary disclosure program or the streamlined filing compliance procedures, a lower-penalty voluntary disclosure initiative for non-willful offshore violators.
The benefits of these programs are that you are given an opportunity to report previously undisclosed offshore accounts with a relatively low risk of criminal prosecution. It is usually better to come forward before the IRS finds you. If we’ve learned anything from these most recent announcements, it is that the IRS is committed to tracking you down if you are hiding assets overseas.
Contact an Experienced OVDP Tax Lawyer
Voluntary Disclosure Attorney in Columbus, Ohio
The Columbus, Ohio tax attorney at Porter Law Office, LLC has significant experience resolving difficult voluntary disclosures under the offshore voluntary disclosure program and non-willful streamlined filing compliance procedures. Schedule a free consultation today with a Columbus, Ohio tax lawyer to discuss your options.