New voluntary disclosure guidelines apply to both foreign and domestic disclosures and include a penalty framework and access to Appeals.
A memo dated November 20 describes changes the IRS is making to its long-standing program — found in the Internal Revenue Manual — for taxpayers to voluntarily disclose tax noncompliance to avoid criminal prosecution. The revised provisions address the vacuum left by the September 28 expiration of the offshore voluntary disclosure program.
Caroline Ciraolo of Kostelanetz & Fink LLP welcomed the guidance and said that her initial thought was that it clearly came out of consideration of issues raised by taxpayers, practitioners, and IRS personnel since the beginning of the OVDP. “I am really pleased to see a penalty framework that offers taxpayers and their representatives some level of certainty,” she said.