If you are an American citizen with an overseas account, and you thought that you can keep it undisclosed and unreported then there is more you need to know.

1. Important Guidelines for OVDP
If you are an American citizen with an overseas account, and you thought that you can keep it
undisclosed and unreported then there is more you need to know. It is important that your
undisclosed overseas account in order to comply with the FBAR guidelines and also include any
missing earning on the amended tax returns. Keeping in mind the “Off-the-shelf” deals that were
offered earlier, the settlement terms were predictable.
There are two vital requirements for overseas voluntary disclosure. First, it is essential for the
taxpayer to not be under any audit or criminal investigation. The second being that the foreign bank
account cannot be associated with any criminal offense for instance currency forgery or drug
trafficking. The moment these pre-requisites are fulfilled, the criminal charges would come off and
the case would be send to the civil department for the estimation of taxes, interests and penalties. A
complete overseas voluntary disclosure program i.e. OVDP offers reduced penalties and make sure
that there is no criminal prosecution. Though there may be few penalties but they come as ordinary
bills.
The participants of overseas voluntary disclosure act are mostly subjected to a 27.5 percent
“offshore” penalty with regards to other penalties that include FBAR civil and other criminal
penalties that comprises jail time. In its totality overseas voluntary disclosures are extremely case
sensitive with complicated processes and rigid rules to follow. The IRS Overseas Voluntary Disclosure
is applicable for citizens who:
● Voluntarily informs the IRS of his tax violations.
● Has the only legal source of income.
● Is not under criminal investigation, for tax evasion.
● Files a correct tax return or cooperates with the IRS

2. ● Makes full payment of the amount due.
Today tax planning agencies provides useful insight into the tax code can be applied to the resident
individuals in the United States, and comprises the US Citizens along with the Green Card Holders. It
also assists consumers with the following benefits:
● Total compliance
● Consult and impact analysis
● Analysis and Planning to bring down FBAR penalty
● AMT Strategies
● Foreign Tax Credit
● Review of 2009 and 2010 OVDI cases
● Mutual Fund or PFIC computations
● Helps in preparing forms that are needed to take part in the OVDP program
● Helps in preparing Tax amendments and delinquent FBAR
● IRS Representation by Enrolled Agents or Affiliated CPAs and Attorneys
● Affordable price
Only expert overseas tax planning agencies having specialized in foreign compliance and sensitive
IRS negotiations are successful to address OVDP and its implications.
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