In a legal memorandum, the Service addressed whether, in the context of the Offshore Voluntary Disclosure Program (OVDP), an overpayment attributable to one tax year may offset the miscellaneous offshore penalty or tax due in a different year in the OVDP disclosure period.

The Service concluded that, unless the taxpayer files a claim for refund that is timely pursuant to I.R.C. § 6511, the Service is prohibited by I.R.C. § 6514 from crediting or refunding the taxpayer’s overpayment.

See full memo by clicking here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.