Offshore Voluntary Disclosure: Introduction | International Tax Lawyer & Attorney Texas
Hello and welcome to Sherayzen Law Office Video blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.
Today, I am standing in front of the IRS Campus here in Austin, Texas that processes Offshore Voluntary Disclosures, in particular Streamlined Domestic Offshore Procedures and Streamlined Foreign Offshore Procedures. This is the perfect spot and the perfect time to talk about what an Offshore Voluntary Disclosure is.
Let’s begin with the fact that, US taxpayers must report their foreign income and foreign assets to the IRS. If they fail to do that, they face potentially multiple and very large IRS penalties. The IRS doesn’t have the resources to audit every single US taxpayer; so, what they prefer to do is to allow US taxpayers to voluntarily resolve their prior US international tax non-compliance.
How exactly they do that depends on the facts and circumstances of each person. The IRS created these Offshore Voluntary Disclosure options which are basically programs for US taxpayers to voluntarily come forward, disclose their prior non-compliance with US international tax laws in exchange for a more lenient tax treatment. How lenient? It depends on the facts and circumstances and it depends on the voluntary disclosure option that you are using.
For example, if you are using an IRS Voluntary Disclosure Practice, that may mean a significant penalty because that option is reserved mostly for willful taxpayers. On the other hand, if you’re using the Streamlined Domestic Offshore Procedures, for example, you will get a much more lenient tax treatment because it is reserved for non-willful taxpayers and of course, if you also reside outside of the United States, the IRS gives you the best option: the Streamlined Foreign Offshore Procedures.
In my next blog, I will continue talking about Streamlined Domestic Offshore Procedures and Streamlined Foreign Offshore Procedures.
Thank you for watching, until the next time.
