voluntary disclosure Archives

By Anthony Diosdi Many tax attorneys tout the benefits of making a voluntary disclosure to the Internal Revenue Service (“IRS”) if you failed to disclose income on previously filed tax returns. Sadly, many professionals neglect to mention the risks of making a voluntary disclosure of unreported income to the IRS. This article will discuss the voluntary disclosure process in detail. A voluntary disclosure is the only administrative remedy that can potentially be utilized to prevent a criminal prosecution for crimes such as tax evasion or the filing of false tax returns. Unfortunately, as will be discussed below in detail, a voluntary disclosure is far from a “sure thing.” Anyone considering making a voluntary disclose to the IRS should know that it had a formal “voluntary disclosure” policy under which a…

By Anthony Diosdi On November 20, 2018, the Internal Revenue Service (“IRS”) issued a Memorandum discussing the rules for all voluntary disclosures (foreign and domestic) after the expiration of the final Offshore Voluntary Disclosure Program (“OVDP”). The Memorandum is broken down into multiple parts: background and overview, IRS Criminal Investigation (“CI”) procedures; civil processing, case development, and civil resolution framework, each of which are discussed in detail below. This article will also discuss the significant hazards of making a voluntary disclosure to the IRS.BackgroundIn 2009, the IRS opened the initial OVDP to provide a uniform mechanism to U.S. citizens and tax residents who had not otherwise disclosed foreign bank accounts, foreign situs assets and income that was used to pay for such assets. After the expiration of the 2009 OVDP,…

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Will a Voluntary Disclosure of Unreported Income to the IRS Really Protect You From Criminal Prosecution?

Making a Voluntary Disclosure to the IRS- Everything You Wanted to Know But Were Afraid to Ask