“Demise of the OVPD” kind of sounds like a sci-fi holiday movie opening, doesn’t it?
In fact, it relates to the termination of a long-running and – for many American tax filers with foreign accounts – scary IRS program aimed at securing government collections relevant to untaxed overseas assets.
The OVDP initiative worked, reportedly hauling in more than $10 billion in taxes and penalties.
And, as we noted in our December 18 blog entry, the program recently terminated. Legions of Americans with global holdings celebrated its passing. We stressed in our post of last week that their euphoria in a now dead-and-buried OVDP “is likely a misplaced emotion.”
A recent in-depth Forbes article on continuing tax-linked concerns for select payers in the wake of the OVDP underscores the reasons why. It addresses why filers who arguably should have taken advantage of the IRS initiative to come forward yet didn’t might now regret their inaction.
Here’s primarily why: “The possible penalties have gone up quite significantly” for filers who now seek to come forward and clear their personal books in the wake of the OVDP’s passing on September 28. Focal points for concern include these requirements and/or possibilities:
- Mandatory filers’ preclearance, which was formerly optional (with new requirements being more stringent than they used to be)
- New submission/review process that involves the direct involvement and plenary discretion of a field agent from the outset
- Potential for materially enhanced fraud penalties that can be further adjusted upward and include criminal sanctions where “willful” taxpayer misconduct is alleged
Questions can understandably arise for any filer currently trying to make reasoned decisions about tax payments concerning overseas assets. Inquiries can be directed to a proven criminal defense law firm with a demonstrated record of advocacy on behalf of diverse individual and institutional clients with tax-linked concerns.