Offshore Voluntary Disclosure Program (OVDP)

At a glance

Learn more about Offshore Voluntary Disclosure Program (OVDP) with the Expat tax experts at H&R Block. The IRS discontinued this program in September 2018.

The IRS shut down OVDP in 2018 and it has now been replaced with a less favorable procedure. However, streamlined disclosure remains intact. Given this, it is important for a taxpayer to consider reaching out to legal counsel if they do not qualify for streamlined disclosure. The Offshore Voluntary Disclosure Program (also known the OVDP) was a program created by the IRS that allowed U.S. taxpayers to become compliant.

Offshore voluntary disclosure refers to U.S. taxpayers who have had foreign accounts, assets, or income and either did not report it accurately or simply did not file U.S. tax returns and international forms. Unlike the streamlined disclosure, an important aspect of the OVDP was even those taxpayers who willfully did not comply with U.S. tax laws could still apply for the program. Another difference with the OVDP was that the program did not necessarily waive criminal penalties.

Note: The IRS is shutting down the OVDP in September of 2018. There has been no announcement of a replacement program.

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