Taxpayers with foreign assets not yet disclosed to the IRS have
a shrinking window of time within which they can report those
assets with reduced penalties.
On March 13, 2018, the IRS announced it will end the Offshore Voluntary
Disclosure Program (OVDP). No applications will be taken after
September 28, 2018.
If a taxpayer has a financial interest in or signature authority
over a foreign financial account exceeding certain thresholds, the
law may require the taxpayer to file a Financial Crimes Enforcement
Network Form 114, Report of Foreign Bank and Financial
Accounts (FBAR).
Failure to make the required report can result in substantial
penalties. Under the OVDP, those penalties can be reduced to 27.5
percent or 50 percent of the amount owed — possibly less
depending upon the circumstances.
