Top 4 Reasons to Opt Out of the 2011 OVDI Program<\/p>\n
1. The IRS Taxpayer Advocate’s Report:<\/p>\n
Although the IRS has not closed very many opt-out cases, the average civil FBAR penalty\u00a0assessed against those opting out of the 2009 OVDP is only $15,737.19 on average. This average is according to the\u00a0IRS’ response to TAS information request (Oct. 23, 2012) noting that $1,255,567 in willful and nonwillful penalties plus $1,671,518 in negligence penalties\u00a0were assessed against taxpayers who opted out of the 2009 OVDP in 186 closed cases. Moreover, a small number of taxpayers could account for\u00a0most of these penalties.<\/p>\n
In other words, the\u00a0IRS Taxpayer Advocate’s Report states that\u00a0the IRS required benign actors (small fish with no intent to violate the law) with minor FBAR violations to spend the time to apply to\u00a0the 2009 OVDP, incur significant fees for representation, and wait for about a year and a\u00a0half for the IRS to process their cases (on average), all in an effort to collect very little FBAR\u00a0penalty revenue.<\/p>\n
So far our opt out clients have fared well in navigating through the opt out program received favorable results.<\/p>\n
2. No real criminal risk.<\/p>\n
According to the\u00a0IRS Taxpayer Advocate’s Report,\u00a0the IRS\u00a0has not initiated any criminal prosecutions against those who opted out.<\/p>\n
3. Appeal Rights.<\/p>\n
There is no appeal within the OVDI program. \u00a0AN opt out affords multiple appeal rights. If your penalty post opt out is unacceptable, then you can appeal to the Appeals Branch of the IRS.\u00a0If your penalty post Appeal is unacceptable, then you can appeal to the Tax Court. You therefore have three procedural attempts to lower the penalty.<\/p>\n
4. Get more time.<\/p>\n
According to IRS response to TAS information request (Oct. 23, 2012), the IRS’ OVD program processing times are longer for benign actors who opt out,\u00a0averaging nearly 550 days for those opting out of the 2009 OVDP. \u00a0This is nearly a 2 year wait, which equates to a 2 year interest free loan for the penalty amount (conservatively assuming no penalty reduction) from the IRS.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Top 4 Reasons to Opt Out of the 2011 OVDI Program 1. The IRS Taxpayer Advocate’s Report: Although the IRS has not closed very many opt-out cases, the average civil FBAR penalty\u00a0assessed against those opting out of the 2009 OVDP is only $15,737.19 on average. This average is according to the\u00a0IRS’ response to TAS information […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[19,20,23,24,54,64,63,68,25,27],"class_list":["post-932","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization","tag-amnesty","tag-asset-protection","tag-fbar","tag-foreign-account","tag-offshore-accounts","tag-opt-out","tag-ovdi","tag-ovdp","tag-penalties-and-interest","tag-voluntary-disclosure"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=932"}],"version-history":[{"count":0,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/932\/revisions"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}