IRS to end offshore voluntary disclosure program

Tax Hot Topics newsletter On March 13, the Internal Revenue Service issued IR-2018-52 announcing the end of the 2014 Offshore Voluntary Disclosure Program (OVDP), effective Sept. 28, 2018.

The IRS is providing taxpayers advance notice of the closure in to order to allow time for any U.S. taxpayers with undisclosed foreign financial assets to use the OVDP before it ends. OVDP began in 2012 and followed similar programs offered in 2011 and 2009. In conjunction with the announcement, the IRS released a list of frequently asked questions and answers regarding the closing of the 2014 OVDP.

The Streamlined Filing Compliance Procedures program, which was designed for individual taxpayers who might not have been aware of their filing obligations, will remain in place and be available to eligible taxpayers. While the IRS stated the Streamlined Filing Compliance Procedure may similarly end at some point, no such decision has been yet announced.

The IRS will also continue to offer other options for addressing previous failures to comply with U.S. tax and information return obligations with respect to foreign financial assets, including:

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