IRS announces its Offshore Voluntary Disclosure Program will be coming to an end

IRS announces its Offshore Voluntary Disclosure Program will be coming to an end

The IRS has announced that its Offshore Voluntary Disclosure Program (OVDP) will end on 28 September 2018.

US citizens are subject to US tax on worldwide income even if they are not resident in the US.

A failure to comply may result in civil and criminal penalties being imposed.

The OVDP enables US ex-pats to voluntarily resolve past non-compliance with reduced penalties and interest for voluntary disclosure.

A voluntary disclosure will not automatically guarantee immunity from prosecution - however, in practice a voluntary disclosure usually results in the IRS recommending no prosecution.

Any questions please contact Suzie Boulous or Geoff Stein.

Summary

Who is a US taxpayer?A US taxpayer is:

  • a US citizen born in the USA

  • an individual who has been naturalised as a US citizen

  • a US citizen born outside USA but one or both parents are US citizens

  • a person who satisfies the "substantial presence" test in USA

  • a person who holds a US green card

When does the OVDP end?The OVDP will officially end on 28 September 2018What happens if a disclosure IS NOT MADE under the OVDP?The IRS will continue to offer other programs under which US taxpayers may make disclosures regarding their unreported foreign assets. However, these disclosures may be referred for criminal investigation.

contact

Geoff Stein

Suzie Boulous