IRS Voluntary Disclosure – Offshore in Houston, TX

You may have heard about the IRS Voluntary Disclosure – Offshore program. Here we answer some common questions about how this program can assist you.

• What is the IRS Voluntary Disclosure – Offshore Program?

  A voluntary disclosure – Offshore happens when a taxpayer provides the IRS with factual and complete information concerning their income. This program allows taxpayers with previously undisclosed income to contact the IRS to settle all their tax matters.

• Is this program penalty-free?

  Making a voluntary disclosure is not completely penalty-free, but it is the right approach for taxpayers to prevent potential civil and criminal charges.

• If there is a penalty, why should I make a voluntary disclosure?

  The goal of the Voluntary Disclosure Program is to give a taxpayer who has knowingly made a mistake, an opportunity to come forward and admit their faults. Then, the IRS considers the voluntary disclosure when recommending to the Department of Justice that the taxpayer should be criminally prosecuted or not. So, making a voluntary disclosure can work in your favor in terms of being charged with a crime while resolving their tax liabilities.

• Is the voluntary disclosure program only meant for offshore accounts?

  No, this is a common misconception. Voluntary disclosures can apply to a wide variety of either omissions or mistakes in taxes. However, this program is not available to those who have illegal income sources. It’s important to know that income from an activity that is legal under state law but is not legal under federal law, is considered an illegal source of income.