OFFSHORE VOLUNTARY DISCLOSURE INCENTIVE PROGRAM
In 2012 the IRS re-opened the Offshore Voluntary Disclosure Incentive Program (OVDI), which allows taxpayers who have offshore accounts (but have either e.g., failed to report foreign income or foreign assets when required), to report their undisclosed foreign bank accounts.
If you are such a taxpayer you have two alternatives with the following consequences:
Once a taxpayer makes a submission under the Streamlined Filing Compliance Procedures, the OVDI is no longer available. It should also be noted that if you are ineligible to use the OVDI you are also ineligible to participate in the Streamlined Filing Compliance Procedures.