In the first part of this article, we looked at FBAR, FBAR penalties, OVDP and the various OVDP submission requirements. In the second and concluding part of this article, we will look at the rest of the submission requirements. 

• All applicants must make out a check to the U.S. Treasury.  The check must include the amount of tax, interest, and accuracy-related penalty under IRC § 6662 (a), and, if applicable, the failure to file and failure to pay penalties under IRC § 6651 (a) (the suspension of interest provisions of IRC § 6404 (g) do not apply to interest due in this initiative). If the applicant cannot pay the total amount of tax, interest, and penalties as described above, he/she must submit his/her proposed payment arrangement and a completed Collection Information Statement ( Form 433-A, Collection Information Statement for Wage Earners and Self-employed Individuals, or Form 433-B, Collection Information Statement for Businesses, as appropriate). 

• All applicants must submit completed Foreign Account or Asset Statement for each previously undisclosed foreign account or asset during the voluntary disclosure period if the information requested in that statement was not already provided in their initial Offshore Voluntary Disclosures Letter. 

• All applicants must submit completed penalty computation worksheet showing the applicant’s determination of the highest aggregate account balance of his/her undisclosed offshore accounts, fair market value of foreign assets, and penalty computation signed by the applicant and the applicant’s representative if the applicant is represented. 

• All applicants must submit properly completed and signed agreements to extend the period of time to assess tax (including tax penalties) and to assess FBAR penalties. 

• All applicants disclosing offshore financial accounts must submit complete and accurate Form TD F 90.22-1, Report of Foreign Bank and Financial Accounts, for foreign accounts maintained during calendar years covered by the voluntary disclosure and/or copies of previously filed FBARs. 

• All applicants disclosing offshore entities must submit a statement identifying all offshore entities for the tax years covered by the voluntary disclosure, whether held directly or indirectly, and your ownership or share control of such entities. 

• All applicants disclosing offshore entities must submit complete and accurate amended (or original, if delinquent) information returns required to be filed, including, but not limited to, Forms 3520, 3520-A, 5471, 5472, 926 and 8865 for all tax years covered by the voluntary disclosure (if the accounts or assets were held in the name of a foreign entity). If the applicant is requesting that the Service waive the information reporting requirement, the applicant should submit a completed and signed Statement on Dissolved Entities. 

Considering the penalties for FBAR violation and the requirements of the OVDP program, taxpayers can avoid the complexities by seeking the services of efficient tax consultants. 

Read More About: Foreign Bank Account, Tax Planning, IRS Amnesty, 1031