Post-OVDI Options: What to Do If You Cannot Make the OVDI Deadline
Introduction: OVDI Deadline is August 31, 2011
On February 8, 2011, the Internal Revenue Service initiated 2011 Offshore Voluntary Disclosure Initiative (OVDI), a special voluntary disclosure initiative, designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. While this program is not available (or even desirable) for everyone, the OVDI program offered many taxpayers a way to bring themselves back into compliance with U.S. tax laws.
The program is only available, however, for taxpayers who apply to be accepted into the program prior to August 31, 2011. It is then possible to get an extension to file the documents, even though there is no guarantee that the extension will be granted, especially for late filers.
Voluntary Disclosure After OVDI
So, what can you do if you cannot make the OVDI deadline? Is any type of voluntary disclosure precluded if you cannot apply for the OVDI by August 31?
The answer is no. Other types of voluntary disclosure will be available after August 31, 2011. It is important to emphasize, however, that the OVDI provides a degree of stability and certainty of FBAR penalties that are unlikely to be matched by other voluntary disclosure options.
Traditional IRS Voluntary Disclosure
The chief post-OVDI voluntary disclosure program will be Traditional IRS Voluntary Disclosure. While it will not offer the same certainty of the FBAR penalties as OVDI currently does with its tiered penalty structure, the Traditional Voluntary Disclosure will be particularly useful for taxpayers who potentially face criminal charges and willful penalties.
Doing Nothing Is Dangerous
It is important to emphasize that, whether or not you will be able to take advantage of the OVDI program, the most dangerous option for you is to do nothing. Taxpayers, who hide this offshore assets and do not come forward, are much likely to face far higher penalty scenarios as well as the possibility of criminal prosecution.
Contact Sherayzen Law Office NOW To Solve Your Tax Issues
Sherayzen Law Office can help you resolve all of your tax compliance issues. Our experienced voluntary disclosure tax firm will guide you through the voluntary disclosure process and vigorously advocate your position, vying for the best outcome possible in your case. E-mail or call us NOW!