New Voluntary IRS Program May Aid Taxpayers with Undisclosed Foreign Accounts

Author: Jodi C. Lipka View article Owing to the success of a similar program in 2009, the Internal Revenue Service (“IRS”) created a second voluntary disclosure initiative to allow U.S. taxpayers with undisclosed offshore accounts from 2003 through 2010, to become current with their taxes. The new program, called the 2011 Offshore Voluntary Disclosure Initiative (“OVDI”), differs from the 2009 program in that it carries higher monetary penalties, specifically an “offshore penalty” with a cap at 25% of the highest year’s aggregate account value during the period of voluntary disclosure.