The Offshore Voluntary Disclosure Program (OVDP) allows taxpayers in the United States to voluntarily disclose their offshore holdings and bring their taxes on those holdings up to date. So what happens if you don’t participate in this program?
Potential Civil Penalties
Penalties as high as 50% of the foreign financial account.
If your foreign account is discovered by the IRS and you haven’t disclosed it or paid taxes on it, you could lose up to half of the account.
Penalties of up to $10,000 per form you fail to file.
Failure to file the correct forms, either by accident or knowingly, can result in penalties up to $10,000 per form.
Monthly interest accruals on your balance owed.
One the IRS has calculated what you owe, if you can’t pay it in full the balance will accrue interest monthly, putting you even further behind.
Potential Criminal Charges
Prison terms of up to ten years.
It depends on what you are charged with, but some charges carry up to 10 years in federal prison.
Fines of up to $500,000.
These fines are over and above what you owe on your taxes.
Avoid the Hassle With Our OVDP Lawyers
Don’t leave yourself, your assets, and your family vulnerable to trouble with the IRS. It can result in hefty fines, criminal prosecution, and even jail time. Let our OVDP lawyers in Washington D.C. help you make your voluntary disclosures and bring your taxes up-to-date and in compliance with U.S. tax code. Click on the button below to request a consultation with our team today.