I’m a US citizen (born in the US), but have lived in Canada for my whole life. In 2011 I decided to enter the IRS’ 211 OVDI program to get caught up on my US tax returns. In retrospect I think it wasn’t such a great idea considering the new streamlined filing procedures that just got announced in September. Also, I have several other US friends that simply filed the last 6 years of tax returns and they seem to be ok.
I’m now considering opting out of he program into the new streamlined procedures. I’m eligible for the new program given the recent requirements.
Have you had any of your client opt out of the program?
Thanks for your time.
For those taxpayers that entered either the 2011 or 2012 OVDI (OVDP) program, there is an opportunity to “opt-out” of OVDI and enter into the new streamlined tax filing procedures announced in September of 2011. The challenge however is that the IRS has yet to give any formal guidance on how to opt out of OVDI and opt in to Streamlined Filing Procedure.
Recently David Horton, Director of IRS LB&I Individual International stated that two avenues of filing are available to US non filers, the 2012 OVDP and the new Streamlined Tax Filing Procedures. All long as you’re eligible for either program “you could come in under [OVDP] or you can come in under streamlined if that is a better process for you.” said Mr. Horton.
It’s our guess that the IRS will allow taxpayers that entered either OVDI 2011 or OVDP 2012 to opt out into the new streamlined procedures if they qualify. That being said, the IRS has yet to formally release any procedures for this “opt out” and it would be wise to wait until you’re contacted by an OVDP agent to discuss the implications for the opt out. Also note that once you’ve opted out of the OVDP, you are not longer shielded from criminal prosecution.
Please feel free to give us a call at 250-381-2400 to discuss further.
is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at firstname.lastname@example.org
or via telephone at 250-661-9417
. You can also read more about Phil at Hutcheson.ca/phil
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