In June 2014, the Internal Revenue Service (IRS) modified its Offshore Voluntary Disclosure Program (OVDP) and unveiled new Streamlined Filling Compliance Procedures (SFCP). These changes provide new options for both U.S. residents and U.S. taxpayers residing overseas who need help with the U.S. tax obligations related to their offshore holdings.
Major changes to the SFCP include eliminating the requirement that taxpayers have $1,500 or less of unpaid tax per year. Also, penalties for eligible U.S. taxpayers residing overseas will be waived, and SFCP-eligible U.S. residents can qualify for a reduced 5% miscellaneous offshore penalty assessed on their offshore assets, which is much lower than the OVDP's base 27.5% penalty.
The IRS's OVDP changes include required upfront penalty payments, and all OVDP participants must now submit their foreign account statements for IRS review. And for foreign accounts at certain offshore banks, OVDP participants must now pay a 50% penalty in lieu of the base 27.5% penalty.
More than ever, U.S. residents and citizens holding offshore assets need proper legal advice to navigate the IRS's new offshore compliance labyrinth. New complexities and traps for the unwary abound.
In a two-hour LIVE Webcast, a seasoned panel of thought leaders and professionals assembled by The Knowledge Group will offer the audience an in-depth discussion of the legal issues and latest updates in offshore compliance. The speakers will also provide noteworthy insights on how to best comply with the updated OVDP and SFCP procedures.
Key topics include:
- Offshore Voluntary Disclosure Program (OVDP) – An Overview
- Modifications to the OVDP Program
- The Streamlined Filing Compliance Procedures
- Transitional Rules for OVDP Eligible Participants
- OVDP Closing Agreements
- Tax Relief for Qualified OVDP Participants
- Potential Civil and Criminal Penalties for Tax Reporting Failures