2012 Offshore Voluntary Disclosure Program
The IRS began an open-ended offshore voluntary disclosure program (OVDP) in January 2012 on the heels of strong interest in the 2011 and 2009 programs. The IRS may end the 2012 program at any time in the future.
The IRS is offering people 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 program 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 introduced in 2012 with modified terms, but for purposes of referring to this modified program, it may be referred to as the 2014 OVDP. The modifications are effective July 1, 2014. See below for links to both the original and modified program terms.
In addition to the OVDP, the IRS offers other options available for U.S. taxpayers with undisclosed foreign financial assets.
OVDP Documents and Forms
Questions and Answers
- Updated Offshore Voluntary Disclosure Initiative Frequently Asked Questions and Answers (2014 Program)
- 2012 Offshore Voluntary Disclosure Program Frequently Asked Questions and Answers
- Transition Rules Frequently Asked Questions
- Form 14452, Foreign Account and Asset Statement
- Offshore Voluntary Disclosure Letter and attachment
- Consent to Extend the Time to Assess Civil Penalties Provided by 31 U.S.C. 5321 for FBAR Violations
- Instructions for Completing Consents
- 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
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
- IR-2012-64, IRS Says Offshore Effort tops $5 Billion, Announces New Details on the Voluntary Disclosure Program and Closing of Offshore Loophole
- IR-2012-64SP, Esfuerzo Extranjero del IRS Supera $5 Mil Millones; Detalles del Programa de Divulgación Voluntaria y Cierre de Laguna Jurídica
- IR-2012-65, IRS Announces Efforts to Help U.S. Citizens Overseas, Including Dual Citizens and Those with Foreigh Retirement Plans
- IR-2012-65SP, IRS Anuncia Ayuda a Estadounidenses en el Extranjero, Incluyendo Aquellos con Doble Nacionalidad y Planes de Jubilación Extranjeros
- IR-2012-5, IRS Offshore Programs Produce $4.4 Billion To Date for Nation’s Taxpayers; Offshore Voluntary Disclosure Program Reopens