In our last blog, we talked about the ways you can opt-out of the OVDP (Offshore Voluntary Disclosure Program). This is, however, not recommended. The FATCA (The Foreign Account Tax Compliance Act) was enacted July 2014 to investigate offshore accounts not being reported to the IRS for tax payments. The IRS and other countries are leading this investigation process. Here are the ways to opt-in to OVDP and avoid the harsh penalties that come with tax evasion.
If you started the filing process on or before June 30, 2014, you can file for a transitional treatment. This will give you the ability to reduce your penalty from 27.5% to 5% through the OVDI (Offshore Voluntary Disclosure Initiative) rules from 2011.
You may want to opt-in directly through the OVDP streamlined procedures for 2015. There are general requirements that a tax attorney familiar with foreign bank account reporting and OVDP can discuss with you to make sure you meet the requirements and this is the best scenario for you.
Another way to opt-in to OVDP is to talk to your D.C. or Maryland tax attorney who is familiar with international tax law, to see if the “Qualified Quiet Disclosure” option is best for you. This offers an option to those with a small amount of money overseas.
It is recommended that if you file for the OVDP and disclose your foreign bank accounts with the help of a local lawyer who knows international tax law and who understands the OVDP. Protect your rights and your future. Filing independently is not advised, as the process is very complex and filing incorrectly can bring penalties of its own. Contact our office at JDKatz: Attorneys at Law to schedule a case consultation to see which opt-in process is best for your individual situation.