The IRS has recently re-launched its Offshore Voluntary Disclosure Program which was designed to entice tax evaders with offshore bank accounts to come clean and pay back taxes without having to worry about additional penalties or potential jail time.
Since the program’s emergence in 2009, the IRS has been able to collect over $5 billion in back taxes, interest and penalties from offshore tax cheats who decided to “fess up.”
So far, the program has helped 33,000 U.S. taxpayers catch up on taxes and avoid future prosecution.
This is the third time the IRS has launched the OVDP, also referred to as the Offshore Voluntary Disclosure Initiative or OVDI – the first time being in 2009 and the second in 2011. The Offshore Voluntary Disclosure Program is indefinite and can be closed at any time.