Offshore Voluntary Disclosure Program (OVDP)
The Offshore Voluntary Disclosure Program (OVDP) is designed primarily for people who knew they were supposed to be reporting their foreign income or assets, and didn’t; i.e. those who acted intentionally.
- You invested legal source funds in the undisclosed assets; i.e. not funds derived from criminal activity
- You have not made a submission pursuant to a streamlined procedure
- You are not under civil examination or criminal investigation by the IRS
- File or amend up to 8 years tax returns
- File or amend up to 8 years FBARs
- Pay back taxes, interest, and penalties
- Pay a penalty ranging from 27.5% to 50% on highest value of unreported assets (primarily what bank your undisclosed account is with)
- Complete various questionnaires
In exchange for taking part in the Offshore Voluntary Disclosure Program (OVDP) you won’t be criminally prosecuted and any non-compliance older than 8 years is forgiven.