The American tax service (IRS) has announced it will stop with the amnesty program O.V.D.P.
Americans Overseas received a memo from it’s network of accountants. It was written by the American Tax service (IRS), announcing the end of the O.V.D.P. program (Offshore Voluntary Disclosure Program) per September 2018.
In first instance this was a big shock to read. We still see many citizens, outside the US with an American background, finding out about their US tax obligation and ’thankfully’ using the IRS amnesty programs. US persons find out via their bank or other sources that there is a US tax filing obligation.
The IRS warns that people with assets abroad should list them before the program ends. The OVDP has mostly been used by people who wilfully hid money from the IRS.
Thankfully the memo ends with good news. Only part of the amnesty program is being terminated. The special program called Streamlined procedure, that is applicable for Americans citizens outside the US who didn’t know about their filing obligation, is kept active for the moment.
This amnesty program gives the citizen filing for the first time in the US a great deal of protection. When accepted into the program you only need to file 3 years of tax returns, 6 years of bank statements and most importantly no penalties are given.
The IRS does state that the Streamlined procedure program, based on the fact that one never heard of a US tax obligation, will not go on indefinitely.
We, the founders of Americans Overseas, were born in Europe and obtained our American nationality through our (American) mother. When we heard about this for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fines or pick up other problems?), and panic (what should I do?). It is (unfortunately) true that there is an additional American tax levy. But there’s no information from local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.
That’s why we started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic, and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with the new tax laws.
Do you have more questions on the end of amnesty program OVDP or the Streamlined procedure ? If so, contact Americans Overseas.
Understanding the US tax system, the obligations, and all the additional terms can be difficult. Especially if one lives outside of America. Is your question not answered? Contact us.
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