Americans with offshore accounts are being advised to apply immediately as the US Internal Revenue Service’s (IRS) Offshore Disclosure Programme (OVDP) is due to end September 28, 2019
American citizens with a foreign bank account have until September 28 to voluntarily disclose worldwide income, including interest, foreign earnings, wages, dividends and other income. The IRS’ Offshore Voluntary Disclosure Programme (OVDP) ends on 28 September, and some people are rushing to get in, as it offers some protection from severe penalties. The IRS is encouraging taxpayers who need to disclose non-compliant and unreported foreign accounts and assets to come forward before the September deadline. Qualifying taxpayers who have unreported foreign accounts can still use the OVDP to come into compliance while avoiding the risk of criminal prosecution and minimizing otherwise applicable civil penalties, but only until that date. The statute of limitations is six years. Plus, the statute of limitations never expires on tax fraud, so the IRS can pursue the citizen many years later for back taxes, interest and penalties.
For those who failed to report income, the civil liability to the IRS can include a 20% accuracy-related penalty or a 75% civil fraud penalty.