The 2014 IRS Offshore Voluntary Disclosure Program And New Streamlined Filing Procedures

On June 18, 2014, the Internal Revenue Service (IRS) announced major changes in its offshore voluntary compliance programs. The changes include an expansion of the streamlined filing compliance procedures and key modifications to the 2012 Offshore Voluntary Disclosure Program (OVDP). The expanded streamlined procedures are available to a wider population of U.S. taxpayers living outside the country and, for the first time, to certain U.S. taxpayers residing in the United States. The modifications to the existing OVDP program in part provide for increasing the offshore penalty percentage from 27.5 percent to 50 percent in certain circumstances.

Options Available for U.S. Taxpayers with Undisclosed Foreign Financial Assets