OFFSHORE VOLUNTARY DISCLOSURE PROGRAM
The 2012 Offshore Voluntary Disclosure Program continues to be offered by the IRS to encourage taxpayers who have failed to accurately report funds held in foreign bank accounts and income derived abroad to make full disclosure and avoid potential criminal sanctions. However, during the past 4 years the Program has undergone significant revisions and taxpayers interested in participating in the program are urged to contact a certified tax lawyer for the latest requirements and benefits.
In most cases, under the OVDP the penalty for failing to timely file the required FBAR is 27½ % (reduced from 50%). A 20 % penalty on income taxes due is imposed in lieu of a fraud penalty of up to 75%. Accounts maintained at certain banks will not qualify for favorable treatment. Consult a Florida Bar Certified Tax Lawyer for more information.
