U.S. taxpayers who participate in the OVDI will be required to
disclose all foreign income, foreign financial accounts, and
ownership interests in foreign entities (such as corporations,
partnerships and trusts) to the IRS for the 2003 to 2010
time period by submitting a complete package of financial
information and documentation (including tax returns and
informational returns) by August 31, 2011. U.S. taxpayers
must also pay the tax, interest and penalties (or submit a
proposed payment arrangement) described below by August
U.S. taxpayers must pay all applicable tax interest, accuracy related
penalties, late filing and late payment penalties (if applicable) for the
2003 - 2010 time period.
U.S. taxpayers must also file all required informational
forms, including Department of the Treasury Form TD F 90- 22.1 to
disclose foreign financial accounts, and certain IRS informational
forms to disclose a U.S. taxpayer's ownership interest in certain
Eligibility to Participate in the OVDI
U.S. taxpayers with undisclosed foreign financial accounts or foreign
assets are eligible to participate in the OVDI as long as
the U.S. taxpayer: 1.Makes a timely, truthful and complete disclosure to
the IRS; 2.Cooperates with the IRS to determine the tax liability associated
with the undisclosed foreign income and assets; 3. Makes good faith arrangements with the IRS to pay in full, the tax, interest and penalties determined by the IRS to be applicable; and 4. No illegal source income from illegal activities or conduct is involved (other than for non-payment of taxes).
A U.S. taxpayer must make a timely application to the OVDI. An application to participate in the OVDI will be timely as long as the U.S. taxpayer is not already under examination, regardless
of whether it relates to undisclosed foreign financial accounts or assets, and the IRS has not already received information from a third party alerting the IRS to the U.S. taxpayer's noncompliance.