Understanding OVDI- Offshore Voluntary Disclosure Initiative

A globalized economy means that in today’s day and age many individuals see much more mobility than in prior decades. It is common to see assets such as rental properties, stocks and securities, bank accounts, etc that are spread out globally because of this mobility. However, how does this affect you as a United States citizen?

The United States taxes its citizens and residents on their worldwide income and imposes annual reporting of certain foreign assets. This can be problematic for members of global families with these world-wide assets as many individuals for one reason of another inadvertently have left one or more of these assets off of their U.S. income tax returns. Failure to come into U.S. tax compliance can result in severe financial penalties, prosecution, and even mandatory jail time. There are tax amnesty programs that have been put into place via the IRS to help avoid this issue; it is called Offshore Voluntary Disclosure Initiative .

Penalties are still payable by those who engage in the program, but take note of the clear benefits. In short the penalties are as follows:

• Currently 20% accuracy-related penalty of the total underpaid tax amount for all the years of missed tax payments.
• A penalty of 27.5% of the highest aggregate balance in offshore accounts or value of foreign assets during the period of the tax amnesty program.

There is unmistakably no price tag that can be placed on the peace of mind given to participants of the program who become tax compliant and no longer have to fear prosecution for tax evasion.

When it comes to international tax and taxation, taxpayers are better off with the services of a reputable tax attorney. You can maximize these and other advantages of the OVDI TaxAmnesty Programs with the guidance of a certified public accountant and tax attorney.

For more information about OVDI you can work closely with Christopher J. Byrne. I bring over 20 years of experience with me to every case I work with and I also keep a close team of highly educated individuals on the case as well. We also work with FBAR compliance and PFIC reporting. Stay on top of your taxation requirnments and needs with Christopher J. Byrne PLLC at christopherbyrne.com.

For more information about the tax amnesty programs such as the Offshore Voluntary Disclosure Program, contact Christopher Byrne. Bringing over 20 years of experience, you know that you are working with a team who knows exactly how to help you properly file your international tax returns.