The IRS Voluntary Disclosure Program is a great way to get back into the tax system. If you haven't field returns or paid taxes in years, if you weren't completely honest about your income, and if you want to be compliant in the future then this program will help you. But not everyone can use it.
I am a tax attorney in Minneapolis, MN. I represent taxpayers all over the country before the IRS, state tax authorities, and United States Tax Court. I deal with tax debts, audits, payroll tax issues, and criminal tax matters. Taxpayers will often get a better deal through the Voluntary Disclosure Program than they otherwise would if the IRS comes knocking. Coming forward is the right thing to do in many circumstances. But, who is eligible to do this?
To take part in the IRS Voluntary Disclosure Program:
- The Taxpayer must not be under audit or examination for the years in question. If normal IRS enforcement is already aware of the matter then its too late.
- The IRS also can't find out about it through the press or some other publicly known means. You basically have to be telling them about activity that they don't already know about.
- You can't have illegal income. This would be income from drug trafficking, money laundering, etc.
- And finally, you have to really come clean. You need to tell them everything and be honest about your activities. You also have to be fully compliant in the future. The goal is to bring you back into the tax system and paying your correct amount of tax.
The benefits of this program can be to limit your tax liability from your misdeeds as well as to keep you out of jail. In order to participate in the program, you will need preclearance from the IRS. Essentially they have to verify that you are eligible and give you permission to come forward. A competent tax attorney can help confirm you are eligible and get you into the program.
If you or someone you know has a tax issue, call me at 763-515-0478, set up an appointment, or email me at email@example.com
Attorney at Law
12800 Whitewater Dr.
Minnetonka, MN 55343