About to Disclose a Previously Undisclosed Foreign Financial Asset to the IRS through the OVDP or Streamlined Filing Compliance Procedures? Better Learn About Option 4
By Anthony Diosdi Just about anyone considering disclosing a previously undisclosed foreign financial asset to the Internal Revenue Service (“IRS”) has heard about the Offshore Voluntary Disclosure Program or the Streamlined Procedures Compliance Filing Procedures. However, few individuals with delinquent international information returns, such as Form 5471, Form 8938, or Form 3520, know about the Delinquent International Information Return Submission Procedures (“DSP”), also referred to as Option 4 among the Options Available for U.S. Taxpayers with Undisclosed Foreign Financial Assets. See Options Available For U.S. Taxpayers with Undisclosed Foreign Financial Assets, IRS last accessed Apr. 23, 2018, https://www.irs.gov/individuals/international-taxpayers/options-available-for-u.s-taxpayers-with-undisclosed-foreign-financial-assets. Offshore PenaltiesU.S. persons with foreign interests have been a focus of an expanding universe of miscellaneous reporting requirements and enforcement. Specific civil sanctions, sometimes referred to as “International Penalties,” may be assessed…