2012 Offshore Voluntary Disclosure Program
The IRS Offshore Voluntary Disclosure Program is working with taxpayers whose penalties may be reduced. The IRS began an open-ended OVDP in January 2012 because of strong interest in the 2009 and 2011 programs. The IRS may end the 2012 program at any time in the future.
The IRS is offering taxpayers with undisclosed income from offshore accounts another opportunity to get current with their tax returns. The 2012 OVDP has a higher penalty rate than the previous programs, but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk detection by the IRS and possible criminal prosecution.
This is a continuation of the program's modified terms introduced in 2012. For purposes of referring to this modified program, it may be referred to as the 2014 OVDP. The modifications are effective on July 1, 2014.
In addition to the OVDP, we offer additional options available to U.S. taxpayers with undisclosed foreign financial assets.
Forms you may need to prepare your submission
- Form 114, Report of Foreign Bank and Financial Accounts (FBAR)
- Form 433A, Collection Information Statement for Wage Earners and Self-Employed Individuals
- Form 433B, Collection Information Statement for Businesses
- Form 872, Consent to Extend the Time to Assess Tax
- Power of Attorney Form for the Offshore Voluntary Disclosure Initiative
Documents you need to review and/or complete
- Complete Form 14452, Foreign Account or Asset Statement.
- Review your Offshore Voluntary Disclosure Letter and Attachment.
- Evaluate and sign the Consent to Extend the Time to Assess Civil Penalties Provided by 31 U.S.C. 5321 for FBAR Violations.
- Follow the Instructions for Completing Consents
Want more background? Read our news releases and fact sheets
- IR-2014-73, IRS Makes Changes to Offshore Programs; Revisions Ease Burden and Help More Taxpayers Come into Compliance
- FS-2014-7, Offshore Income and Filing Information for Taxpayers with Offshore Accounts
- FS-2014-6, IRS Offshore Voluntary Disclosure Efforts Produce $6.5 Billion; 45,000 Taxpayers Participate
- More ...