What Are the Common Types of Offshore Voluntary Disclosure?
It is important to point out that there is a distinction between official OVD through an IRS program and an unofficial voluntary disclosure by a taxpayer outside of such programs. Officially, only one type of Offshore Voluntary Disclosure existed – the IRS official programs such as 2009 Offshore Voluntary Disclosure Program (OVDP), 2011 Offshore Voluntary Disclosure Initiative (OVDI), 2012 and the recently terminated 2014 OVDP.
Unofficially, however, a taxpayer can comply with all of the requirements of the official OVD (such as accuracy, truthfulness, completeness, et cetera) and utilize the existing legal penalty structure to conduct unofficial OVD. This is the so-called Modified Voluntary Disclosure or Noisy Disclosure (if the taxpayer relies on a reasonable cause, then it will be considered as “reasonable cause disclosure”). Of course, hybrid variation and so-called quiet disclosure also exist.
The choice between these OVP paths is extremely complex, because each type of disclosure contains numerous rules and exceptions; moreover, the impact of each disclosure in a given case will depend highly on the facts of this case. Since the stakes are usually very high and involve potential criminal penalties, it is highly recommended that you retain the services of an experienced tax attorney to determine the legal path of your voluntary disclosure before making this choice.
- New 2014 OVDP Update: Introduction
- Offshore Voluntary Disclosure Eligibility Criteria
- Offshore Voluntary Disclosure Program: Advantages And Disadvantages
- Offshore Voluntary Disclosure Program: Key Requirements
- Failure To Conduct Voluntary Disclosure And Potential Penalties: 2013 Update
- IRS Declares New 2012 Offshore Voluntary Disclosure Program
- Post-OVDI Voluntary Disclosure Of Foreign Bank And Financial Accounts
- Dealing With Undisclosed Foreign Income And Foreign Bank And Financial Accounts
- 2011 Offshore Voluntary Disclosure Initiative
- 2011 OVDI Statute Of Limitations
Sherayzen Law Office has advised more than 150 clients from over 30 countries on the FBAR and FATCA voluntary disclosures, spending a staggering total of over 10,000 hours. We have conducted all types of offshore voluntary disclosures, from noisy (reasonable cause/modified voluntary) disclosures to 2011 ODVI, 2012 OVDP and 2014 OVDP while maintaining a high rate of successful case resolutions.
While conducting voluntary disclosures, our US international tax attorney Mr. Eugene Sherayzen and our tax professionals have prepared a countless number of FBARs, Forms 5471, 8865, 8621 (using both default PFIC and OVDI/OVDP Mark-to-Market methods) and other related tax forms. We have built a dependable team of international tax professionals who approach each case individually, seeking creative ethical solutions.
Generally, the best way for you to start working toward resolution of your tax issues is to set up a consultation with Mr. Sherayzen (which can be in-person, by telephone, or through Skype video conference) to discuss your tax situation with an experienced international tax attorney.