Answers to the Most Frequently Asked Questions Regarding OVDP
As a tax attorney specializing in the Offshore Voluntary Disclosure Program (OVDP), nary a day goes by that I don’t get a call from a person inquiring about the OVDP. The questions asked are relatively the same. After a while, I began to make a list of the most frequently asked questions. Below are my answers to them: (continued)
XIII. I have two offshore accounts. No FBARs were filed. I reported all income from one account, but not the other. How do I report this?
The issue can be framed as follows: Must you report both accounts as a voluntary disclosure or should you separate them so that there is a delinquent FBAR filing for the reported account and a voluntary disclosure for the unreported account?
Because the annual FBAR requirement is to file a single report disclosing all foreign accounts meeting the reporting requirement, it is not possible to separate the corrected filing. Instead, you should make a voluntary disclosure for the omitted income and include the delinquent FBARs for both accounts.
The account with no tax deficiency is unrelated to your tax noncompliance. Therefore, no penalty will be imposed with respect to that account.
Next: XIV. If the amount of income that I underreported from my foreign bank account was de minimis, do I really need to enter the program?
And
XV. If the IRS has served a John Doe summons or made a treaty request seeking information that identifies me as the holder of an undisclosed foreign account or undisclosed foreign entity, does that disqualify me from making a voluntary disclosure under this program?
In accordance with Circular 230 Disclosure
As a former public defender, Michael has defended the poor, the forgotten, and the damned against a gov. that has seemingly unlimited resources to investigate and prosecute crimes. He has spent the last six years cutting his teeth on some of the most serious felony cases, obtaining favorable results for his clients. He knows what it’s like to go toe to toe with the government. In an adversarial environment that is akin to trench warfare, Michael has developed a reputation as a fearless litigator.
Michael graduated from the Thomas M. Cooley Law School. He then earned his LLM in International Tax. Michael’s unique background in tax law puts him into an elite category of criminal defense attorneys who specialize in criminal tax defense. His extensive trial experience and solid grounding in all major areas of taxation make him uniquely qualified to handle any white-collar case.
1 comment on “Should I Stay or Should I Go? – Part 10”
You can go online at http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.htm and file a complete form and click on the “Amended” form box and fill it all out. Do not leave any account out. Don’t take chances with this government.
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