Since 2009, the IRS has been offering taxpayers with undisclosed foreign financial accounts the opportunity to come forward under its Offshore Voluntary Disclosure Initiative (OVDI). The OVDI program has been slightly revised over the last years, but it in essence allows taxpayers who are not under audit or criminal investigation and who are not on IRS lists of offshore account holders (obtained from foreign banks) the opportunity to gain clearance from criminal prosecution and civil penalties by paying a one-time FBAR penalty. Once the IRS becomes aware of an undisclosed foreign account, OVDI is no longer an option for the beneficial owner of that account and much more severe penalties will be applied. It is expected that FATCA and other initiatives by the IRS will increase the success of their enforcement activities.
Kaiser Partner Financial Advisors accepts tax compliant clients and through our network of and close cooperation with tax professionals in America and Switzerland, are committed to assist potential new clients through the process of voluntary disclosure and tax compliance where necessary.