Paying your taxes in time is an essential aspect of every citizen. It proves that an individual or enterprise is abiding to the tax regulations and scrupulous in business and personal deals. If you are an American citizen having an offshore account that you have been maintaining privately, then it is advised that you report about it is staying compliant with tax laws.
There are two important components of overseas voluntary disclosure are:
First, the taxpayer should not be under criminal or audit investigation.
Second, the foreign bank account should not be associated with any illegal practices, for instance currency laundering or drug trafficking.
Once these pre-requisites are catered to, the criminal charges will automatically come off the table and the case would be transferred to the civil department for the analysis of penalties, taxes and interest. Therefore, systematic OVDP i.e. Overseas Voluntary Disclosure Program offers reduced penalties and makes sure that there is no criminal prosecution. However, there can be some fines or penalties in the form of bills.
The OVDP participants generally are changed at 27.5 percent of overseas penalty in lieu of the other penalties that includes FBAR civil and other penalties that also comprises of jail time. In its totality OVDPs are case sensitive with complicated processes that needs to be followed and can be also be subjected to strict rules and guidelines. The IRS overseas voluntary disclosure can be applied to the citizens whom:
Voluntarily informs the IRS of his tax violations.
Has the only legal source of income.
Is not under criminal investigation, for tax evasion.
Files a correct tax return or cooperates with the IRS
Makes a full payment of the amount due.
In order to make the OVDP process easier, there are expert tax planning consultants providing a comprehensive insight about the tax code applicable to resident individuals in the United States, including US Citizens and Green Card Holders. The benefits include:
Total compliance
Consult and impact analysis
Analysis and Planning to bring down FBAR penalty
AMT Strategies
Foreign Tax Credit
Review of 2009 and 2010 OVDI cases
Mutual Fund or PFIC computations
Helps in preparing forms that are needed to take part in the OVDP program
Helps in preparing Tax amendments and delinquent FBAR
IRS Representation by Enrolled Agents or Affiliated CPAs and Attorneys
Affordable price
However, only expert and qualified overseas tax planning companies specialized in foreign compliance and sensitive IRS negotiations can manage OVDP and its implications.
There are two important components of overseas voluntary disclosure are:
First, the taxpayer should not be under criminal or audit investigation.
Second, the foreign bank account should not be associated with any illegal practices, for instance currency laundering or drug trafficking.
Once these pre-requisites are catered to, the criminal charges will automatically come off the table and the case would be transferred to the civil department for the analysis of penalties, taxes and interest. Therefore, systematic OVDP i.e. Overseas Voluntary Disclosure Program offers reduced penalties and makes sure that there is no criminal prosecution. However, there can be some fines or penalties in the form of bills.
The OVDP participants generally are changed at 27.5 percent of overseas penalty in lieu of the other penalties that includes FBAR civil and other penalties that also comprises of jail time. In its totality OVDPs are case sensitive with complicated processes that needs to be followed and can be also be subjected to strict rules and guidelines. The IRS overseas voluntary disclosure can be applied to the citizens whom:
Voluntarily informs the IRS of his tax violations.
Has the only legal source of income.
Is not under criminal investigation, for tax evasion.
Files a correct tax return or cooperates with the IRS
Makes a full payment of the amount due.
In order to make the OVDP process easier, there are expert tax planning consultants providing a comprehensive insight about the tax code applicable to resident individuals in the United States, including US Citizens and Green Card Holders. The benefits include:
Total compliance
Consult and impact analysis
Analysis and Planning to bring down FBAR penalty
AMT Strategies
Foreign Tax Credit
Review of 2009 and 2010 OVDI cases
Mutual Fund or PFIC computations
Helps in preparing forms that are needed to take part in the OVDP program
Helps in preparing Tax amendments and delinquent FBAR
IRS Representation by Enrolled Agents or Affiliated CPAs and Attorneys
Affordable price
However, only expert and qualified overseas tax planning companies specialized in foreign compliance and sensitive IRS negotiations can manage OVDP and its implications.
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