The IRS has extended the deadline for offshore voluntary disclosure initiative (“OVDI”) requests until Sept. 9, 2011, because of the potential impact of Hurricane Irene on taxpayers. The IRS had previously given taxpayers until Aug. 31 to present their requests to the IRS.
The 2011 OVDI was announced on Feb. 8, 2011, and follows the 2009 Offshore Disclosure Program (OVDP). The 2011 initiative offers clear benefits to encourage taxpayers to come forward rather than risk detection by the IRS. Taxpayers hiding assets offshore who do not come forward will face far higher penalties along with potential criminal charges.