IRS Extends its Offshore Voluntary Disclosure Program Indefinitely

In December 2014, the IRS announced that it was extending its Offshore Voluntary Disclosure Program (OVDP) for an indefinite period.  The OVDP is a tax amnesty program that was launched in 2009 with the intent of encouraging taxpayers with unreported foreign bank/investment accounts to avoid criminal charges and pay reduced civil penalties by making a voluntary disclosure to the IRS. According to the IRS, since the inception of the OVDP there have been more than 50,000 disclosures, resulting in the collection of more than $7 billion in taxes and penalties.