Archive | OVDP

IRS Offshore Voluntary Disclosure Program: Declines and Withdrawals

February 21, 2017  |   Posted by :   |   OVDP   |   0 Comments

Taxpayers with undisclosed offshore holdings who applied for the IRS Offshore Voluntary Disclosure Program (OVDP) through the pre-clearance process but were either denied access to the OVDP, or later withdrew from the program face increased risks. On February 1, 2017 the IRS Large Business and International Division of the IRS released a 13-item list for […]

Read More »

IRS Offshore Voluntary Disclosure Program – as amended 7/1/14

January 25, 2017  |   Posted by :   |   OVDP   |   0 Comments

Under the IRS Offshore Voluntary Disclosure Program (“OVDP”) 7/1/14 amendment the taxpayer who enters the program increases their cost since the payment is now due up front for all taxes, penalty and interest. The OVDP is now quite expensive and may wipe out the entire taxpayer offshore account. The IRS Offshore Voluntary Disclosure Program Frequently […]

Read More »

A Warning to Tax Practitioners

September 09, 2016  |   Posted by :   |   OVDP   |   0 Comments

For non-compliant taxpayers, a tax practitioner’s ethical duties are well summarized by the IRS see: IRS Offshore Voluntary Disclosure Program; Frequently Asked Questions and Answers 2014 (Effective for OVDP submissions made on or after 7/1/14, updated 2/8/16), see FAQ #47. The advice due client is contained in Circular 230 (Treas. Dept.) Sec. 10.21 re: non-compliant […]

Read More »

IRS/OVDP Risks and Perils: Recent Cases

March 30, 2016  |   Posted by :   |   OVDP   |   0 Comments

1. Ty Warner On 7/11/15 Forbes reported that a three Judge 7th Circuit Court of Appeals Panel rejected Federal Prosecutors’ request that billionaire, Ty Warner, owner of Beanie Babies, Forbes 400 billionaire (worth $2.5B+) do jail time for hiding $107m in UBS/Switzerland from 1996-2007, failing to report $24.4m interest income (over the 11 tax years) […]

Read More »

IRS OVDP (7/1/14) Risks & Perils – Part 3

March 24, 2016  |   Posted by :   |   OVDP   |   0 Comments

If you have been reading my previous newsletters you would know that I have grave misgivings about the IRS/OVDP. The reasons are as follows: 1) Under IRC sec 7525 there is no attorney-client privilege for criminal tax evasion (which means that if the OVDP submission is not accepted, the taxpayer is later ruled ineligible, or […]

Read More »

IRS OVDP (7/1/14) Risks & Perils – Part 2

March 10, 2016  |   Posted by :   |   OVDP   |   0 Comments

Under the IRS OVDP (7/1/14) the IRS may criminally prosecute: 1) If the IRS already has taxpayer name disclosed by either the foreign financial institution, the facilitator, under a tax treaty, or by a “whistleblower”; 2) If the taxpayer is not accepted in the OVDP because unknown to them they are already under IRS criminal […]

Read More »

IRS/OVDP (7/1/14) Risks & Perils – Part 1

March 09, 2016  |   Posted by :   |   OVDP   |   0 Comments

The IRS Offshore Voluntary Disclosure Program (OVDP)/2014 is a continuation of the 2012 IRS/OVDP with modified terms (which are the successors to the short-lived e.g. 6 months+ 2009 IRS/OVDP; 2011 IRS/Offshore Voluntary Disclosure Initiative (IRS/OVDI). Unlike its prior programs, the IRS /OVDP (2014) has no set deadline for taxpayers to apply. The terms of the […]

Read More »

IRS Offshore Voluntary Disclosure Program – 2016

February 22, 2016  |   Posted by :   |   OVDP   |   0 Comments

As of 7/1/14 the IRS changed their 2012 Offshore Voluntary Program in a stealth manner which greatly increased both the costs and the risks. Effective 7/1/14, the OVDP requires: 1) Payment up-front with the OVDP Application of all Tax, Penalty and Interest due which includes the Offshore Penalty (Title 26 Misc. Penalty), which is either […]

Read More »

IRS Offshore Voluntary Disclosure Program

September 04, 2015  |   Posted by :   |   OVDP   |   0 Comments

Criminal Tax Defenses (Issues) For those U.S. taxpayers who voluntarily entered the IRS Offshore Voluntary Disclosure Program, they waived numerous rights, including: 1. The 5th Amendment right against self-incrimination; 2. A 4th Amendment right to be secure in their persons, papers and property from “unreasonable searches and seizures”; 3. A statute of limitations defense to […]

Read More »

Revenues surge as global crackdown on tax evasion gathers pace

August 11, 2015  |   Posted by :   |   OVDP,Tax Evasion   |   0 Comments

As stated in the article below, $10 trillion is still being hidden in offshore financial centers. Only a fraction of these tax cheats have come forward to declare their assets (despite the claims in the article). In the US less than 50,000 taxpayers have disclosed their offshore accounts under the IRS Offshore Voluntary Disclosure Program […]

Read More »