The Offshore Voluntary disclosure initiative is popularly known as OVDI or OVDP (Offshore Voluntary disclosure program). OVDI is an IRS program that was initiated in the year 2009 and has gone through multiple modifications since. OVDI offers taxpayers the opportunity to disclose their undisclosed foreign bank investments and income from the offshore accounts.
OVDP gives the tax evaders an opportunity to escape from criminal charges when the unpaid taxes are paid with heavy penalties voluntarily.
As a part of the OVDI program one needs to report foreign accounts to IRS every year (Report of Foreign Bank and Financial Account – FBAR) failing which one could be charged FBAR penalties.
The best way to protect yourself from the IRS is to voluntarily disclose your foreign accounts and undisclosed income and pay your taxes at the earliest. You could seek the help of any professional offshore tax attorneys for further advice and complete the legal process.
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