About IRS Amnesty

How Does the IRS Offshore Voluntary Disclosure Program Work?

The IRS Offshore Voluntary Disclosure Program provides businesses, individuals, partnerships, trusts and other entities in the New York, New Jersey, Connecticut and Philadelphia regions, across the nation and abroad with the opportunity to voluntarily make a disclosure of previously unreported foreign accounts and assets to the U.S. government.  

This federal tax amnesty program is designed to encourage taxpayers who have failed to report their offshore accounts and assets to make a full disclosure to the IRS.  The program offers taxpayers incentives for making such a disclosure, including avoiding possible criminal investigations and prosecution as well as the potential for reduced fines and penalties.

Who is Eligible to Participate in the IRS Voluntary Disclosure Program?   

The IRS Voluntary Disclosure Program has strict rules and requirements governing which taxpayers may be eligible to participate in the amnesty program.  In the event that the IRS has already opened an examination of a taxpayer, the taxpayer will not be eligible to participate in the program.  

While the voluntary disclosure program can offer significant benefits to eligible participants, individuals and business who are considering making a voluntary disclosure to the IRS should consult with an experienced New Jersey IRS amnesty attorney before filing an application to participate.  There are many caveats associated with this program and the specific terms and conditions can be very difficult to navigate.  

Taxpayers in New York, New Jersey, and Philadelphia should discuss their individual situation with a skilled tax attorney at our firm to determine whether this program may be right for them.

What Steps are Associated with Making a Voluntary Disclosure to the IRS?

There are several steps involved in making a voluntary disclosure of a previously unreported offshore account to the IRS.  The process is highly involved and typically takes about two years to complete from start to finish.  

When a client decides to participate in this program a New Jersey IRS amnesty attorney at our firm will initiate the process by filing a pre-clearance request with the IRS.  The IRS will review the request and notify the taxpayer whether they have been cleared to make a voluntary disclosure to the IRS.  It is important to understand that receiving pre-clearance from the IRS does not guarantee the taxpayer will be accepted into the program.  

Once the taxpayer receives pre-clearance notification, our firm will prepare and file an offshore voluntary disclosure letter with the IRS.  After examining this letter and all associated attachments, the IRS will make a determination about whether the taxpayer has been accepted into the program on a preliminary basis.  If the taxpayer has been preliminarily accepted, our attorneys will work with the taxpayer to file a “full voluntary disclosure submission” with the IRS.   

The requirements associated with this step of the process are very complicated and taxpayers should consult a skilled New Jersey IRS amnesty attorney to make certain they are providing the IRS with all information needed to be accepted into the program.  At this stage of the process the IRS may also request additional information and documents from the taxpayer.  

Once the IRS finds the submission to be complete, an IRS civil examiner will certify all information for accuracy and verify the amount of any civil penalties, taxes and interest due from the taxpayer.  The IRS and the taxpayer will then enter into a closing agreement setting forth all of the taxpayer’s obligations under the program.

Discuss Your Situation with an Experienced New Jersey IRS Amnesty Attorney

The attorneys at Thorn Law Group have extensive experience representing clients in the New York and New Jersey region and across the U.S. seeking to participate in the IRS Offshore Voluntary Disclosure Program.  

Our firm will thoroughly review your situation to determine if this federal amnesty program represents the best way to bring your foreign accounts and assets back into compliance with U.S. tax laws and regulations.  Email Kevin E. Thorn or call our New Jersey office: 201-355-8202.