Tax Lawyer's Blog

The IRS has issued a new reminder about its voluntary disclosure program (VDP) for delinquent taxpayers:

The IRS stresses that acceptance into a voluntary disclosure arrangement depends on the individual facts and circumstances involved in each case. Taxpayers with unreported income should immediately discuss with their tax professional their options to get right with the government, including taking advantage of coming in voluntarily.

A voluntary disclosure occurs when the communication is truthful, timely, complete, and when: A taxpayer shows a willingness to cooperate (and does in fact cooperate) with the IRS in determining his/her correct tax liability.

For a complete understanding of the voluntary disclosure procedures, see Internal Revenue Manual (IRM) 9.5.11.9

Taxpayers cannot rely on the fact that other similarly situated taxpayers may not have been recommended for criminal prosecution. Also, a voluntary disclosure will not automatically guarantee immunity from prosecution; however, a voluntary disclosure may result in prosecution not being recommended. This practice does not apply to taxpayers with illegal source income.

There are two ways taxpayer participation in the VDP is initiated:

1. By calling the telephone number designated for the state in which the delinquent taxpayer resides; or
2. By sending a voluntary disclosure letter to the IRS which includes all of the information listed in (IRM) 9.5.11.9.

Deadline Reminder for Offshore Account Holders

The deadline for participation in VDP for taxpayers with foreign offshore accounts is September 23, 2009.

(Hat Tip: Professor Jack Townsend, Federal Crimes Blog)

Bookmark & Share: