Effective September 2018, the IRS have officially closed the Offshore Voluntary Disclosure Program (OVDP), which was a voluntary disclosure program designed for taxpayers with exposure to potential criminal liability and/or substantial civil penalties due to a willful failure, to report foreign financial assets and pay all tax due in respect of those assets. However, the IRS are still committed to keeping the Streamlined Filing disclosure facility open for the time being.
Late US tax returns and Foreign Bank Account Reports (FBARS)
The Streamlined Filing disclosure facility allows US taxpayers to file the last three late US tax returns and last six late FBARS with reduced penalties assuming the non-filing can be shown to be non-wilful.
With the withdrawal of the OVDP, it is our view that the IRS may look to close down or amend the terms of the Streamlined Filing Program in the near future. We therefore strongly advise you to contact us as soon as possible for advice on the IRS guidance on non-wilfulness.