Americans living abroad who are delinquent on filing expat tax returns or Foreign Bank Account Reporting (FBARs) have an opportunity to come clean and get caught up. The IRS’s Offshore Voluntary Disclosure Program (OVDP) is designed to encourage expatriates late on filing expat tax returns or FBARs become compliant. The program offers an opportunity to receive reduced penalties and to avoid criminal prosecution.
What Is Foreign Bank Account Reporting (FBAR)?
Many Americans living abroad may find themselves behind on their expat tax returns or FBAR. Anyone who has more than $10,000 in overseas bank or financial accounts must file an FBAR with the US Department of the Treasury. While failure to file typically results in increased penalties and potential criminal persecution, the IRS; Offshore Voluntary Disclosure Program (OVDP) is a way to encourage individuals to come clean with their offshore accounts.
In the short video below, learn more about the OVDP including details about a separate program for “low risk” individuals who have simple returns with little to no US tax due. Those who qualify have the opportunity to avoid any penalty as well as criminal prosecution.
Need Help Filing Your Expat Tax Return?
Have a look at our video post about what Americans filing expat tax returns should know about the FBAR. If you would like to speak to one of our expat tax experts or need help filing your expat tax returns, please contact us.