123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Ovdp 2012 & Its Necessary Implications

Profile Picture
By Author: Alice Coope
Total Articles: 213
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Under the revised policies of IRS it is essential to make a voluntary disclosure of any undisclosed foreign accounts in order to remain compliant and avert any kind of civil penalties. This also helps to eradicate the risk of legal prosecution under the updated OVDP i.e. Offshore Voluntary Disclosure Program.

The OVDP 2012 which is the third overseas program comes as the IRS Amnesty carries on working on a diverse range of internal tax concerns following practices with the Justice Department to pursue criminal prosecution for evading international tax. However, the primary objective of OVDP is to make taxpayers having undisclosed foreign accounts declare the foreign accounts and stay compliant with the tax laws applicable in the United States. The OVDP 2012 penalty needs participants to:

* Pay a high penalty of 27.5% of the highest aggregate balance in unreported foreign accounts at the time of the eight full tax years prior to the disclosure.

* ...
... File each and every original and amended tax return and include payment for back-taxes and interest up to eight years. It also entails paying off any accuracy-related and/or delinquency penalties.

OVDP Benefits

Taxpayers who have willingly come forward and made voluntary disclosures since the 2011 closure, they will be treated under the 2012 OVDP provisions. Other benefits that tax payers can enjoy are as follows:

* As opposed to 2011 OVDI, there are no strict application deadlines for the taxpayers under 2012 OVDP. It is however essential to note that the IRS can modify the terms of 2012 OVDP as per their discretion

* A voluntary disclosure comes with the scope to estimate with a reasonable amount of certainty, the overall cost of solving all offshore tax concerns

* You are immune from criminal penalties or any other kind of Jail Time

In order to make the most of OVDP 2012, you can join hands with a Tax planning agency in the United States that can provide a complete knowledge of the tax codes that is applicable to US resident individuals, US citizens and Green Card holders. It also helps in the following ways:

* Consultation and Impact Analysis

* Analysis and Planning to reduce FBAR Penalty

* AMT Strategies, Foreign Tax Credit

* Review of 2009, and 2010 OVDI cases

* Mutual Fund or PFIC computations

* Preparation of forms required to participate in the OVDP program

* Preparation of Tax Amendments and Delinquent FBAR

* IRS Representation by Enrolled Agents or Affiliated CPAs and Attorneys

Therefore, partnering with a tax planning agency for OVDP 2012 results in complete compliance and free from all legal hassles.

Read More About: Entity Formation

Total Views: 255Word Count: 426See All articles From Author

Add Comment

Business Articles

1. Finding A Trusted Sustainability Consultant In Abu Dhabi
Author: Agile Advisors

2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors

3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review

4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals

5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo

6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan

7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun

8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie

9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort

10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd

11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo

12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals

13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene

14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog

15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: