Successful OVDI Resulted in $6k of Penalties Instead of $150k
Taxpayer had several bank accounts in Ukraine which he failed to disclose for several years. Failure to disclose foreign bank accounts to the IRS could result in jail time and civil penalties of up to 50% of the balance in the accounts PER YEAR. That could have totaled over $150,000 of penalties alone.
Taxpayer hired us to work out a settlement with the IRS under the Offsore Voluntary Disclosure Program (OVDP/OVDI). Over the course of several months, we completed the disclosure package and worked out a settlement with the IRS of only $6,000 of penalties and no criminal penalties!