Hypotheticals Demonstrating When Opting Out is Detrimental To the Taxpayer –

Under what circumstances might opting out of the OVDI be detrimental for the taxpayer? Below are two examples.

Example 3: Large Unreported Gain

Kevin is a U.S. citizen. In 2008, he opened a checking account in Country A with funds upon which U.S. taxes were previously paid. Kevin owned an apartment building in Country A that he sold in 2008. However, Kevin failed to report the gain from the sale of that building on his tax return. Read More