IRS Updates on Voluntary Disclosure Guidance
In September 2018, the IRS closed its Offshore Voluntary Disclosure Program for reporting undisclosed offshore assets. Streamline submissions procedures, qualified amended return, and delinquent submissions still remained, but closure of OVDP left a gap in guidance for potentially “willful” taxpayers to come forward to disclose offshore assets. On November 20, 2018, the IRS issued a memo on “Updated Voluntary Disclosure Practice”, which sets forth guidance for both domestic and offshore related voluntary disclosures after the recent closure of OVDP.
The Service has consistently affirmed its commitment to go after U.S. taxpayers that have failed to disclose foreign assets. The IRS is shifting towards examining more foreign disclosures, and recent case law continues to change the definition of “willfulness” when analyzing civil penalties in the foreign asset context. Therefore, it is important to closely analyze a taxpayer’s facts and carefully evaluate their alternatives to minimize tax, civil penalties, and potential criminal exposure.
This course is an overview of the options currently available to come forward to disclose foreign assets, file delinquent returns, or amend returns to report previously unreported income (both offshore and domestic). We will discuss the pros and cons of the revised voluntary disclosure program and other alternatives.
Mr. Noff utilizes his background as a CPA and attorney to vigorously defend clients before the IRS and state taxing authorities. Mr. Noff is the firm’s lead…
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