The Offshore Voluntary Disclosure Initiative’s (OVDI) streamlined filing compliance procedures with 5% penalty has been opened up to non-willful violators residing in the U.S. Though participants under the streamlined procedures do not have all the benefits of OVDI participation, this change should reduce the burden on many noncompliant taxpayers.
However, this development does impose stricter rules on those entering the OVDI, in addition to a 50% penalty where the financial institution where an account was held is under government investigation.
See Charles Rubin, “BREAKING OVDI NEWS: 5% STREAMLINED PENALTY PROCEDURE OPENED UP,” RubinOnTax (Jun. 18, 2014).
Posted by Morgan Yuan, Esq., Associate Editor, Wealth Strategies Journal.