Make Your OVDP Reporting Easy
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
OVDP’s 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
● 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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