In a release dated September 4, 2018, the IRS
reminded taxpayers that the program that allowed for reduced civil
liabilities for offshore reporting violations is coming to an end
on September 28. The program, generally known as the Offshore
Voluntary Disclosure Program, or "OVDP," started in 2008
in the wake of revelations that certain major European banks
assisted U.S. persons in hiding substantial assets and income
through offshore accounts. The IRS subsequently modified and
fine-tuned the program over the next several years. By all accounts
the program was a success, bringing thousands of taxpayers into
compliance and collecting back taxes and penalties. However,
because applications for the OVDP have sharply fallen and because
the IRS believes taxpayers are now generally educated as to their
reporting obligations, the IRS has chosen to discontinue the
OVDP.
