OVDI / OVDP

  • OVDI Offshore Voluntary Disclosure Initiative
  • OVDPOffshore Voluntary Disclosure Program

ovdp-taxesWHAT ARE OVDP AND OVDI?

  • Both have the same objective: to bring taxpayers that have used undisclosed foreign accounts and undisclosed foreign entities to avoid or evade tax into compliance with US tax laws.
  • OVDP was a 2009 IRS program for taxpayers with previously unreported income from offshore transactions.
  • OVDI was launched in 2011 to give more taxpayers with offshore accounts a similar opportunity to come forward.
  • OVDP had demonstrated the value of a uniform penalty structure for taxpayers who voluntarily came forward to report their previously undisclosed foreign accounts and assets.
  • Both programs gave consistency and predictability to taxpayers to help them determine the amount of tax and penalties they faced.
  • The initiative also helped the IRS centralize the civil processing of offshore voluntary disclosures.