Confused Instead of eight years of amended

Confused about the advantages and disadvantages ofStreamlined Program vs Offshore Voluntary Disclosure Program (OVDP)? Thefollowing information is exactly what you need in order to help you navigate thepros and cons of both options. OVDP: Pros: Reduced Risk of Criminal Prosecution:·     As a program tailor-made for people with possibleexposure to criminal liability and/or civil penalties and who are looking to reducetheir chances of criminal prosecution due to noncompliance with U.S tax obligations,the OVDP can reducethe risk of criminal prosecution as long as you execute an exact andcomprehensive disclosure of all foreign records and assets. Cons: Lengthy Process: ·     OVDP requires a long compliance process, whichhas several stages and expects a large amount of paperwork and information.

Thisprocess may take up to two years to fully complete.  Increased Penalties:·     The OVDP program applies a miscellaneousoffshore penalty of 27.5% of your highest foreign account balance. Whencompared to the Streamline Programs, this balance can seem large.  Streamlined Programs: Pros: Faster Process·     The compliance process for the streamlinedoffshore procedure is managed promptly when compared to the OVDP. Instead ofeight years of amended earnings as demanded by the OVDP,you only have to submit threeyears of amended earnings.

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In addition, the Streamline program only demandsthe submission of sixyears of missing FBARS instead of the eightyears demanded by the OVDP. Fewer Penalties:·     The fees for the streamlined programs are moderate when distinguished from the OVDP. Dependingon the circumstances of the taxpayer, people may apply for one of the twoprograms: StreamlinedForeign Offshore Procedures, which requires the taxpayer to pay their tax and a 0% offshore fee,or the StreamlinedDomestic Offshore Procedures which requires the taxpayer to pay a5% fee of their highest year-end balance for the six-year agreement duration.In addition, the assets fined in the OVDP program are not fined in the StreamlineProgram. Cons: Criminal Prosecution:·     Unlike the OVDP the streamline programs do notoffer a pathway to prevent the risk of criminal prosecution.

Therefore, the IRScan still pursue a criminal investigation even if you are enrolled in thisprogram.  Looking for more information about the OVDP and theStreamlined programs? Contact the HTG team at 720-398-6088 or visit the HTG website to discuss your situation today. 

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