IRS Tax Amnesty & Voluntary Disclosure Practice
What do you do if you have committed a serious tax crime but the IRS has not yet discovered it? Tax amnesty has been a longstanding practice of the IRS Criminal Investigation division whereby taxpayers are allowed to make timely, accurate, and complete voluntary disclosures to avoid criminal prosecution.
Taxpayers are given tax amnesty for “coming clean” regarding their tax crimes. There are two such programs depending on whether the tax evasion involves domestic or foreign income:
- Domestic Voluntary Disclosure Program (not to be confused with streamlined domestic offshore procedures which is a completely unrelated program)
Offshore Voluntary Disclosure Program (OVDP)(UPDATE: OVDP was discontinued by the IRS as of 9/28/2018. Clients should consider the domestic voluntary disclosure program where needed)