The Offshore Voluntary Disclosure Program (OVDP) is Coming to an End

Posted by Lee Reams Sr. on

The IRS has, for several years, offered “disclosure programs,” aimed at getting taxpayers with hidden offshore accounts to voluntarily come forward and comply with FBAR and foreign income reporting. Under these programs participants must file all original and amended tax returns and include payment for back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties.

The current program is the 2014 OVDP, which the IRS announced in March 2018 will be shut down as of September 28, 2018 (IR-2018-52).  The discontinuance of this program is a reflection of advances in third-party reporting (as a result of FATCA) and increased awareness by U.S. taxpayers of their tax reporting obligations. Only 600 disclosures were made under the program in 2017, down from a peak of 18,000 disclosures under an earlier OVDP. Another program, the Streamlined Filing Compliance Procedures program will continue to be available to eligible taxpayers.