If you owe money to the Internal Revenue Service (IRS), you have options available for mitigating your liability and reducing your risk of criminal prosecution. However, in order to take advantage of these options, you may need to act quickly, and it will be important to make informed decisions based on the advice of an experienced Virginia IRS voluntary disclosure lawyer.

If you have fallen behind on your reporting obligations, then one option you may have is to utilize the IRS’s streamlined filing compliance procedures. There are a number of eligibility criteria, the most-important of which is that your failure to file must have been “non-willful.” If you submit a streamlined filing and the IRS determines that you willfully failed to disclose your offshore bank accounts, then it may initiate an audit and impose full penalties for your disclosure violation.  

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.