Failed to file US taxes? We can help.
If you are a US citizen, green card holder or a person with a “substantial presence” in the US – which means you live for 183 days or more in the US in a given calendar year – and you have income from outside the United States, you must file a tax return with the IRS. Some such defined people may be unaware of this requirement and may not have filed their US tax return in a timely manner. The IRS has a procedure for such taxpayers to get compliant on their US taxes through voluntary disclosure. The means taxpayers can disclose and amend their tax returns for the relevant years, and pay any taxes they owe.
One method to get compliant available to non-willful taxpayers, or those who failed to file by simple oversight is called the “streamlined foreign offshore procedure.” It is complex and requires filing of several forms for each year of non-compliance, such as an FBAR and form 8939 “Statement of Specified Foreign Financial Assets” to disclose all sources of income. THEVOZ Attorneys can help you attain a successful streamline foreign offshore procedure for all relevant tax years.
Avoid criminal penalties
The IRS also provides taxpayers with criminal tax exposure a means to come into compliance with the law and potentially avoid criminal prosecution by encouraging U.S. taxpayers to voluntarily disclose and correct any errors with respect to their tax returns. Offshore Voluntary Disclosure Program (“OVDP”) is is the only offshore voluntary disclosure program targeted at taxpayers who willfully failed to report and pay tax on income from undisclosed foreign assets, or failed to disclose foreign assets. Voluntary disclosure does not guarantee immunity from criminal prosecution, but taxpayers can reduce their risk potential criminal prosecution by paying applicable civil penalties.
This new voluntary disclosure regime was announced in November 20, 2018 and applies to both offshore and domestic voluntary disclosure after September 28, 2018. It is important to seek advice from a U.S. tax attorney before you seek relief under OVDP. Under the new regime the disclosure periods have been reduced from 8 years to 6 years. Civil penalties for failure to file a tax return, failure to file FBAR, and failure to file information return penalties have also been updated under the new regime.
If you are a non-compliant U.S. taxpayer living abroad or in the U.S., THEVOZ Attorneys can successfully guide you through the IRS voluntary disclosure program and bring you to full compliance with your U.S. tax obligations. We can assist in drafting Offshore Voluntary Disclosure Letter (Forms 14457 and 14454) and represent you in front of the IRS. We can also advise you when filing amended returns with the collaboration of an accountant under Kovel Letter (preservation of attorney-client privilege). If necessary, THEVOZ Attorneys can help you appeal to the IRS Office of Appeals.