The IRS announced plans to close the 2014 Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. Taxpayers wishing to take advantage of the program prior to closure must complete full submissions by this date.
The 2014 OVDP is a modified version of the program that began in 2012, following voluntary programs from 2011 and 2009. Over the last 9 years, more than 56,000 taxpayers have engaged in the program to voluntarily resolve their tax issues regarding unreported foreign financial assets.
However, there’s been a recent, significant decline in taxpayers entering the program, with only 600 disclosures last year. This, along with increased awareness of offshore tax and reporting obligations, has led the IRS to their decision to close the program in September of 2018.
The IRS also stated that the Streamlined Filing Compliance Procedures would still be available to eligible taxpayers, but this program could also end at some point.
Although the 2014 OVDP is closing, stopping offshore tax noncompliance and evasion remains a top priority of the Internal Revenue Service. The IRS will continue to utilize resources such as the Foreign Account Tax Compliance Act (FACTA) and automatic third-party account reporting to enforce offshore tax compliance.
Check out the FAQ page on the IRS website for more details, or contact us today for a complimentary consultation