{"id":2358,"date":"2018-12-23T10:39:08","date_gmt":"2018-12-23T10:39:08","guid":{"rendered":"https:\/\/sarahf10.sg-host.com\/?p=2358"},"modified":"2021-11-16T20:14:30","modified_gmt":"2021-11-16T20:14:30","slug":"irs-issues-new-voluntary-disclosure-practices-that-may-raise-penalties","status":"publish","type":"post","link":"https:\/\/taxops.com\/irs-issues-new-voluntary-disclosure-practices-that-may-raise-penalties\/","title":{"rendered":"IRS issues new voluntary disclosure practices that may raise penalties"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright\"><img decoding=\"async\" width=\"350\" height=\"232\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2019\/05\/Making-goodwith-the-IRS-2.png\" alt=\"\" class=\"wp-image-2359 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2019\/05\/Making-goodwith-the-IRS-2.png 350w, https:\/\/taxops.com\/wp-content\/uploads\/2019\/05\/Making-goodwith-the-IRS-2-300x199.png 300w\" sizes=\"(max-width: 350px) 100vw, 350px\" \/><noscript><img decoding=\"async\" width=\"350\" height=\"232\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2019\/05\/Making-goodwith-the-IRS-2.png\" alt=\"\" class=\"wp-image-2359 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2019\/05\/Making-goodwith-the-IRS-2.png 350w, https:\/\/taxops.com\/wp-content\/uploads\/2019\/05\/Making-goodwith-the-IRS-2-300x199.png 300w\" sizes=\"(max-width: 350px) 100vw, 350px\" \/><\/noscript><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">On November 29, 2018, the IRS released a memorandum that addressed the process for all voluntary disclosures following the end of the Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. The&nbsp;<a href=\"https:\/\/www.irs.gov\/pub\/spder\/lbi-09-1118-014.pdf\" rel=\"nofollow\"><u>new rules<\/u><\/a>, effective for all disclosures after September 28, 2018, up the penalties for non-compliance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under the new rules, taxpayers are required to request preclearance to kick off the process and an initial submission must be made to the IRS Criminal Investigation office (<a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f14457.pdf\" rel=\"nofollow\"><u>Form 14457<\/u><\/a>). The form requires applicants to provide a narrative statement with the facts and circumstances of their assets, entities, related parties, and any professional advisors, and is necessary for the taxpayer to be preliminarily accepted into the new program.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An IRS field agent then takes over the disclosure process, document submission, payments and penalties, following a formal examination process for analyzing disclosures. The length of the disclosure period is now&nbsp;<em>six-years,&nbsp;<\/em>reduced from the previous requirements of 8 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new program allows IRS field agents more discretion to assert penalties. Non-cooperative taxpayers can see penalties extend beyond the six-year disclosure period; this is a gray area where effective negotiations might reduce penalties. In addition, field agents have the discretion to add penalties associated with the failure to file FBAR\/information returns under existing penalty guidelines. Taxpayers that disagree with assigned penalties can appeal to the IRS?s Office of Appeals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contact your\u00a0<a href=\"https:\/\/taxops.com\/meet-the-team\/\"><u>TaxOps advisor<\/u><\/a>\u00a0for guidance on this and other amnesty programs available to delinquent taxpayers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Source:&nbsp;<a href=\"https:\/\/www.irs.gov\/pub\/spder\/lbi-09-1118-014.pdf\" rel=\"nofollow\"><u>Memorandum for Updated Voluntary Disclosure Practice<\/u><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Let&#8217;s talk tax<\/strong><\/p>\n\n\n\n<blockquote>\n    <p><a href=\"https:\/\/taxops.com\/team\/judy-vorndran\"><u>Judy Vorndran<\/u><\/a> can be reached at <a href=\"mailto:jvorndran@taxops.com\"><u>jvorndran@taxops.com<\/u><\/a>        or 720.227.0093. <a href=\"https:\/\/www.linkedin.com\/in\/judyvorndran\/\"><u>Follow<\/u><\/a> Judy <strong>on LinkedIn.<\/strong>\n    <\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">\n\nSpecialties: #tax, #delinquent, #IRS\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On November 29, 2018, the IRS released a memorandum that addressed the process for all voluntary disclosures following the end of the Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. The&nbsp;new rules, effective for all disclosures after September 28, 2018, up the penalties for non-compliance. Under the new rules, taxpayers are required to request [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2926,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[228,226],"tags":[92,111,139],"class_list":["post-2358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-tax","category-tax-news","tag-irs","tag-tax","tag-voluntary-disclosure"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2019\/05\/Making-goodwith-the-IRS.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/2358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=2358"}],"version-history":[{"count":2,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/2358\/revisions"}],"predecessor-version":[{"id":9341,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/2358\/revisions\/9341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/2926"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=2358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=2358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=2358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}