IRS Offshore Voluntary Disclosure Program Nets $10 Billion So Far

By:
Chris Gaetano
Published Date:
Oct 24, 2016
IRS

The IRS's Offshore Voluntary Disclosure Program has proven quite popular since its launch, with thousands of taxpayers coming out of the shadows to relinquish $10 billion in back taxes, according to the IRS. Data shows that 55,800 taxpayers have taken part in the program since it was first founded in 2009 and paid more than $9.9 billion in taxes. The program allows tax scofflaws who had hidden income in foreign accounts or assets to come clean with the IRS and pay what they owe now, rather than risk detection by the IRS at a later date and face more severe penalties and possible criminal prosecution. The IRS also said that another 48,000 taxpayers used a separate streamlined procedure in the same time period to correct prior non-willful omissions and meet their federal tax obligations, paying approximately $450 million in taxes, interest and penalties. The IRS developed the Streamlined Filing Compliance Procedures to accommodate taxpayers with non-willful compliance issues. 

“The IRS has passed several major milestones in our offshore efforts, collecting a combined $10 billion with 100,000 taxpayers coming back into compliance,” said IRS Commissioner John Koskinen. “As we continue to receive more information on foreign accounts, people’s ability to avoid detection becomes harder and harder. The IRS continues to urge those people with international tax issues to come forward to meet their tax obligations.”



Click here to see more of the latest news from the NYSSCPA.