Should I Stay or Should I Go? – Part 18

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Written by Michael DeBlis, III | Posted in FBAR • OVDP

Answers to the Most Frequently Asked Questions Regarding OVDP

As a tax attorney specializing in the Offshore Voluntary Disclosure Program (OVDP), nary a day goes by that I don’t get a call from a person inquiring about the OVDP. The questions asked are relatively the same. After a while, I began to make a list of the most frequently asked questions. Below are my answers to them: (continued)

XXII. If I opt out, will my case be referred for audit?

Yes, your case will be referred to the field for a complete examination of all issues. In that examination, the normal statute of limitations rules apply. If no exception to the normal three-year statute applies, the IRS will only be able to assess tax, penalties, and interest for three years.

However, if the period of limitations was open, then six years of liability may be assessed. Under what circumstances might the period of limitations remain open? One such scenario is if the IRS can prove a substantial omission of gross income. Similarly, if there was a failure to file certain information returns, such as Form 3520, Form 5471, or Form 8938, the statute of limitations will not have begun to run. And if the IRS can prove fraud, there is no statute of limitations for assessing tax.

Finally, the statute of limitations for asserting FBAR penalties is six years from the date of the violation, or the date that an unfiled FBAR was due to have been filed.

Next: XXIII. Does my case remain within the Voluntary Disclosure Practice even after opting out?

XXIV. If I opt out and the IRS discovers issues during a full scope examination that I did not previously disclose, can my case be referred back to Criminal Investigation?

XXV. If I opt out and the IRS conducts a full examination, may I appeal any tax and penalties imposed by the IRS? How about the IRS’s decision on the terms of the OVDP closing agreement?

In accordance with Circular 230 Disclosure

Michael DeBlis, III

As a former public defender, Michael has defended the poor, the forgotten, and the damned against a gov. that has seemingly unlimited resources to investigate and prosecute crimes. He has spent the last six years cutting his teeth on some of the most serious felony cases, obtaining favorable results for his clients. He knows what it’s like to go toe to toe with the government. In an adversarial environment that is akin to trench warfare, Michael has developed a reputation as a fearless litigator.

Michael graduated from the Thomas M. Cooley Law School. He then earned his LLM in International Tax. Michael’s unique background in tax law puts him into an elite category of criminal defense attorneys who specialize in criminal tax defense. His extensive trial experience and solid grounding in all major areas of taxation make him uniquely qualified to handle any white-collar case.