Streamlined Procedures Are Available

For individual U.S. taxpayers with undisclosed foreign assets or accounts, the IRS Offshore Voluntary Disclosure Program (OVDP) may not be their only option. You may also be eligible to pursue a streamlined voluntary disclosure procedure.The Streamlined Filing Compliance Procedures are intended to simplify the process for those eligible. They involve filing original or amended returns with the IRS. If approved, the miscellaneous offshore penalty would be limited to zero, or 5 percent of the value of your foreign financial assets, depending on where you reside. U.S. taxpayers residing in the United States or offshore may be eligible.Determining whether to follow the OVDP or streamlined path requires thoughtful analysis of the law and your finances. At MillarLaw, our attorneys are not only experienced legal professionals, but they also have experience with finance. When evaluating your situation, they will draw upon this financial and legal experience to determine which path is best for you.

A Critical Component: Nonwillful Conduct

The streamlined program is centered around nonwillful failure to comply. You must certify under penalty of perjury that your failure to disclose offshore assets was not willful — that is, due to a good faith misunderstanding, inadvertence or negligence rather than an intent to conceal assets.

If the IRS determines that your lack of compliance was willful, you could face full civil and, potentially, criminal penalties.

Understanding The Risks

The streamlined procedure is not right for everyone. It does not provide the same protections as the OVDP. Rejection could result in significant consequences. Additionally, once you file under the streamlined procedures, you will not be eligible to pursue OVDP (although certain taxpayers currently in OVDP may be able to transition to the streamlined procedures).

Before pursuing either the streamlined procedure or the voluntary disclosure program, it’s important to obtain a professional recommendation based on your circumstances. At MillarLaw, our attorneys can perform a detailed analysis and walk you through the risks and benefits.

We draw on nearly 40 years of experience in domestic and international tax law. Both of our lawyers have robust backgrounds in not only the law, but also finance and business. We combine these strengths to protect the finances and freedoms of clients around the globe.

Consult With A Lawyer About Your Eligibility

Learn more about which program is right for you. Call our office in Los Angeles, California, at 310-556-3007 or email us to get in touch. We work with clients worldwide.