Offshore Voluntary Disclosure Program (OVDP) : An Update
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
Allen Sullivan, Partner
Burr & Forman LLP
- Offshore Voluntary Disclosures & Streamlined Filings
- History of the OVDP
- The Original OVDP
- The OVDP Evolves
- Introducing the Streamlined Program
- FATCA Lurks
- FATCA’s Impact
Jason B. Freeman, Attorney
Meadows, Collier, Reed, Cousins, Crouch & Ungerman, L.L.P.
- Willfulness: A Threshold Issue
- Examples of Potential Penalties Where There is Willfulness
- Recent FBAR Penalty Guidance
- The Mitigation Guidelines
- Willful vs. Non-Willful
- United States v. McBride
- Willful blindness and the check-the-box argument
- The Streamlined Procedure: Certification of Non-Willfulness
Brian J. Levy, Attorney
Morris, Manning & Martin, LLP
- Participating in the Streamlined Filing Compliance Procedures (SFCP)
- Streamline Filing: Who is Eligible?
- Streamlined Foreign Offshore Procedures (SFOP)
- Foreign Filing Instructions
- Streamlined Domestic Offshore Procedures (SDOP)
- Domestic Filing Instructions
- Miscellaneous Offshore Penalty
- What happens after making a streamline filing?
- OVDP: Key Differences
- OVDP Miscellaneous Penalty
Lewis B. Kevelson, Partner
- Tips for Preparing a Complete, Accurate, and Truthful Disclosure
- Initial Document Review
- Documents to Review – Domestic
- Documents to Review – Foreign
- Foreign Data – Summarizing Key Financial Data
- Passive Foreign Investment Companies
- Possible last minute planning
- Sample OVDP Submission Package
Who Should Attend:
- Foreign Investors
- Tax Preparers
- Tax Practitioners
- Tax Professionals
- In-house Counsel
- Private and Public Companies
- Other related/interested Professionals and Organizations
Brian J. Levy is a senior associate at Morris, Manning & Martin, LLP in Atlanta, where he is a member of the firm’s tax and litigation practice groups. Mr. Levy represents taxpayers before the United States Tax Court and in administrative proceedings before the Internal Revenue Service and state and local taxing authorities. Mr. Levy also advises clients on FBAR and FATCA compliance issues, including participation in the Offshore Voluntary Disclosure Program (OVDP).
Prior to joining the firm, Mr. Levy was a staff attorney for the United States Court of Appeals for the Eleventh Circuit. He received his law degree from the William and Mary Law School, where he was a member of the law review, and his undergraduate degree from the University of Virginia.
Brian J. Levy is a senior associate at Morris, Manning & Martin, LLP in Atlanta, where he is a member …
Mr. Freeman is a tax and white-collar attorney, adjunct professor at Southern Methodist University’s (SMU’s) Dedman School of Law, and licensed CPA. He represents clients in litigation and pre-litigation proceedings, focusing on federal and state tax controversies and white-collar investigations and disputes, both civil and criminal. He also advises and assists clients with tax compliance.
His recent litigation experience includes serving as trial counsel in a criminal tax evasion and conspiracy jury trial in the Federal District Court for the United States Virgin Islands. In addition to his trial and litigation experience, Mr. Freeman represents clients in appellate matters, recently serving as lead appellate counsel in a case before the United States Court of Appeals for the Third Circuit in which he presented oral argument before the Court.
Mr. Freeman was recognized by D Magazine in 2015 as one of the Best Lawyers in Dallas for tax law. Also in 2015, Mr. Freeman received the Young CPA of the Year Award by the Texas Society of CPAs for significant contributions to the accounting profession and the community. He has also been recognized as a Texas Rising Star in Tax Law by Texas Monthly Magazine and as a Rising Star by the Texas Society of CPAs.
Mr. Freeman is a tax and white-collar attorney, adjunct professor at Southern Methodist University’s (SMU’s) Dedman School of Law, and …
Allen Sullivan is a Partner in Burr & Forman’s Corporate and Tax Practice Group with a focus on tax planning, tax controversy and litigation, and international tax. Allen’s tax controversy and litigation background includes individual, business, international, and estate taxes. Allen's efforts on this front include audit representation, IRS appeals negotiations, collections matters, penalty abatements (domestic and international), and Tax Court litigation, to name a few.
In addition, his experience includes offshore account and foreign entity compliance. He has represented dozens of U.S. citizens and residents, dual citizens and their families, and related entities in properly reporting their offshore holdings and in reconciling previous compliance missteps, failures, and deficiencies. Allen's offshore compliance practice also includes expertise in the IRS's Offshore Voluntary Disclosure Initiatives for persons with unreported foreign entities and bank accounts, and the IRS's new Streamlined Program.
Allen Sullivan is a Partner in Burr & Forman’s Corporate and Tax Practice Group with a focus on tax planning, …
Lewis B. Kevelson is a Partner in Marcum’s Tax and Business Services Division. Mr. Kevelson has 20 years of experience providing guidance to clients in a wide range of financial, tax and estate matters. He focuses his practice on international taxation, with a concentration on non-U.S. individuals and enterprises doing business and investing in the U.S. and U.S. individuals and enterprises doing business abroad.
A substantial part of Mr. Kevelson’s practice is advising foreign investors and foreign businesses in tax strategies for the acquisition, operation and disposition of U.S. real estate. International clients also rely on Mr. Kevelson for advice on structuring new U.S. business ventures.
Mr. Kevelson also provides income tax planning and compliance services to U.S. executives working abroad and to U.S. corporations with foreign subsidiaries and joint ventures.
Lewis B. Kevelson is a Partner in Marcum’s Tax and Business Services Division. Mr. Kevelson has 20 years of experience …
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About Morris, Manning & Martin, LLP
Morris, Manning & Martin (MMM) is an AmLaw 200 law firm with national and international reach. The firm is dedicated to the constant pursuit of its clients’ success. To provide clients with optimal value, the firm combines market-leading legal services with a total understanding of clients’ needs to maximize effectiveness, efficiency and opportunity.
MMM enjoys national prominence for its tax, intellectual property, litigation, technology, real estate, corporate, healthcare, energy & infrastructure, capital markets, environmental, insurance, and timberland & forest products practices. The firm has offices in Atlanta, Raleigh-Durham, Savannah, Beijing and Washington, D.C. and an alliance with GCN in São Paulo, Brazil.
About Meadows, Collier, Reed, Cousins, Crouch & Ungerman, L.L.P.
Meadows, Collier, Reed, Cousins, Crouch & Ungerman, L.L.P. is a Dallas based law firm that has provided business, tax and regulatory solutions to individuals and corporate clients since 1983. Meadows Collier’s litigation practice focuses on defending clients in investigations, litigation and other civil, criminal and administrative controversies with governmental agencies, including disputed individual, partnership, corporate, and estate tax issues, and regulatory and enforcement agency investigations. The firm also practices in the areas of Real Estate, Corporate and Securities, and Commercial Litigation. For more information about the firm visit www.meadowscollier.com or call 214.744.3700.
About Burr & Forman LLP
For over a century, Burr & Forman LLP’s experienced legal team has served clients with local, national, and international interests in numerous industry and practice areas, ranging from commercial litigation and class actions to corporate transactions, including bankruptcy and restructurings. A Southeast regional firm with nearly 300 attorneys and nine offices in Alabama, Florida, Georgia, Mississippi, and Tennessee, Burr & Forman attorneys draw from a diverse range of resources to help clients achieve their goals and address their complex legal needs. For more information, visit the firm’s website at www.burr.com.
About Marcum LLP
Marcum LLP is one of the largest independent public accounting and advisory services firms in the United States. Headquartered in New York City, Marcum LLP offers the resources of 1,300 professionals, including more than 160 partners, in 23 full-service offices in major business markets throughout the U.S., Grand Cayman and China. Marcum is a member of the Marcum Group, an organization providing a comprehensive range of professional services spanning accounting and advisory, technology solutions, wealth management, and executive and professional recruiting. The Marcum Group companies include Marcum LLP, Marcum Technology LLC, Marcum Search LLC, Marcum Staffing LLC, Marcum Financial Services LLC, Marcum Bernstein & Pinchuk LLP, and MarcumBuchanan Associates LLC.