The fact that the IRS Offshore Voluntary Disclosure Program (“OVDP”) closes on September 28, 2018, obscured another important deadline that is much closer – the August 24 OVDP Deadline to submit the Preclearance Request.
August 24 OVDP Deadline: What is a Preclearance Request?
The Preclearance Request is basically a pre-application process to make sure that a taxpayer is eligible to apply for the OVDP. It is filed with the IRS Criminal Investigation Unit (“IRS-CI”), which will check for any outstanding investigations or examinations concerning the taxpayer.
August 24 OVDP Deadline: Is the Preclearance Request Required?
The short answer is “no”. I have seen a fair number of Internet blogs that mislead the taxpayers into believing that to the contrary, but this is simply false. A person can skip the Preclearance Request and apply directly to be accepted into the OVDP.
Nevertheless, even though the Preclearance Request is not an absolute requirement, it may be prudent to go through this process in some cases. It will be up to your international tax attorney to determine whether this is necessary.
What is the August 24 OVDP Deadline?
According to FAQ #11 published for the Closure of the OVDP, August 24, 2018 is the last day that a taxpayer will be able to submit his Preclearance (OVDP FAQ 23) Request to the IRS.
It should be remembered that the response to a Preclearance request may take 30 days or more (especially with the current rush to enter OVDP prior to its closure). In fact, the response to a Preclearance request may even come into conflict with the OVDP closure deadline. In such cases, it would be prudent to timely submit by September 28, 2018, the OVDP application letter required by OVDP FAQ #24.
Contact Sherayzen Law Office for Help With Your OVDP Application
If you have undisclosed offshore accounts and you wish to enter the OVDP, contact Sherayzen Law Office for professional help.
Sherayzen Law Office has successfully helped its clients around the globe with every type of an offshore voluntary disclosure, including 2009 OVDP, 2011 OVDI, 2012 OVDP and 2014 OVDP. We can help You!
Time is of the essence, because the current 2014 OVDP will close on September 28, 2018. Contact Us Today to Schedule Your Confidential Consultation!