A quiet disclosure is not an actual IRS program. It is term used to describe the process of filing unfiled or amended tax returns and/or FBARs to report previously unreported foreign income or assets without formally taking part in one of the IRS programs described above.
The advantage of a quiet disclosure is that if your quiet disclosure escapes IRS scrutiny you will avoid the penalties that come with some of the programs described above; for example, the 50% OVDP penalty. This is, however, a big risk! If the IRS decides to audit your quiet disclosure you have no protection from criminal prosecution and the monetary penalties could far exceed what you would have paid under one of the IRS programs; in some cases, the penalties are more than your undisclosed assets.
Quiet disclosures carry high risk of IRS scrutiny because the IRS’ view is that if they don’t penalize people who do quiet disclosures, it is unfair to those who have taken part in IRS programs and paid applicable penalties.
If you have unreported foreign income or assets that need to be disclosed, Esquire Group will advise you on the best course of action given your circumstances.