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OVDI--Offshore Voluntary Disclosure Initiative


Offshore Voluntary Disclosure Program and Offshore Voluntary Disclosure Initiative 

WHAT ARE OVDP AND OVDI? 

  • Both have the same objective: to bring taxpayers that have used undisclosed foreign accounts and undisclosed foreign entites to avoid or evade tax into compliance with US tax laws. 
  • OVDP was a 2009 IRS program for taxpayers with previously unreported income from offshore transactions. 
  • OVDI was launched in 2011 to give more taxpayers with offshore accounts a similar opportunity to come forward. 
  • OVDP had demonstrated the value of a uniform penalty structure for taxpayers who voluntarily came forward to report their previously undisclosed foreign accounts and assets. 
  • Both programs gave consistency and predictability to taxpayers to help them determine the amount of tax and penalties they faced. 
  • The initiative also helped the IRS centralize the civil processing of offshore voluntary disclosures.


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