After 32 years of IRS work \u2014 and more than $100 million in resolved tax debt \u2014 I've seen just about every version of the problem you're dealing with. I'm Darrin Mish, a tax attorney in Tampa. Here's what you should know.<\/p>\n
The IRS\u2019 recently concluded Offshore Voluntary Disclosure Initiative (OVDI) was a \u201cresounding success\u201d, according to IRS Commissioner Doug Shulman. This year\u2019s OVDI mirrored the first held two years ago, with another 15,000 taxpayers participating in the initiative. The OVDI managed to collect a total of at least $2.7 billion in back taxes and reduced penalties. Under the OVDI, participating taxpayers are given limited amnesty from punishment when they declare their offshore taxable income and pay up all back taxes. Fines were imposed but no criminal charges will be pressed. \u00a0Click here to watch or read more information on IRS Back Taxes.<\/a><\/p>\n As a result, the Treasury Inspector General for Tax Administration (TIGTA) gave positive feedback on the OVDI in its latest report. Its report said that IRS\u2019 smooth administration of the offshore voluntary disclosure initiative \u201cincreased taxpayer compliance.\u201d These sentiments were echoed by Shulman when he said, \u201cWe are clearly bringing people back into the U.S. tax system \u2013 and we are bringing revenue into the U.S. Treasury.\u201d<\/p>\n The TIGTA, J. Russell George said in a statement about the OVDI, \u201cOur report found that the IRS\u2019s voluntary disclosure practices were effective, and cases were being appropriately assigned and verified even with the unusually high volume of disclosure requests received and accepted.\u201d Indeed, the report went on to say that the true effects of the program \u201cmay not be measurable for years as the information and intelligence derived from it may spawn future criminal and civil income tax investigations of banks, financial institutions, and tax haven promoters.\u201d<\/p>\n