Another year is in the books. As 2019 comes to a close, tax season will soon be upon us, and many people will inevitably wait until the last minute to submit their federal returns to the Internal Revenue Service (IRS).

For U.S. taxpayers with offshore accounts, it is wise to ensure compliance with tax reporting requirements on those accounts. The IRS is particularly aggressive regarding offshore accounts, since these accounts have historically been used for tax evasion or avoidance. And if the taxpayer has previously unreported accounts but wants to come into legal compliance, voluntary disclosures may be their best option.

Virginia residents who have not timely disclosed their foreign financial assets to the Internal Revenue Service (IRS) have one less option than they did a year ago. This is because the IRS’s Offshore Voluntary Disclosure Program (OVDP) ended on September 28, 2018. While there is a new program that has taken the place of the OVDP, this new program is different from the OVDP in many important respects. As a result, anyone needing to catch up on their foreign financial disclosures should speak with a Virginia OVDP lawyer as soon as possible.

If you have unreported offshore bank accounts, you may be aware that you can disclose these accounts to the IRS while minimizing your penalties and criminal exposure. However, you may also be inclined to refrain from disclosing these accounts immediately. That said, the question is: Disclose now or later?

As a U.S. taxpayer, you have the right to challenge any IRS tax bill that you believe is either unfair or inaccurate. However, any such challenge will need to comply with strict guidelines and procedures. This is not something that is advisable for the taxpayer to do on their own. Legal representation will be necessary.