How Long Do You Have to Submit a Voluntary Disclosure to the IRS?

While taxpayers can use voluntary disclosures to resolve qualifying federal tax law violations, they can only do so if they make their disclosures in a “timely” manner. Among other things, this means that taxpayers must make their disclosures before the IRS opens an audit or investigation. If you are considering a voluntary disclosure, consult an experienced Washington, D.C. international tax attorney before moving forward.

The IRS’ Voluntary Disclosure Practice (VDP) provides a pathway for taxpayers to resolve “willful” tax law violations without facing criminal charges. While immunity from prosecution is not guaranteed, the VDP is designed to facilitate amicable resolutions between taxpayers and the IRS. To participate in the VDP, taxpayers must meet several requirements, including a “timely” disclosure. Learn more from Washington, D.C. international tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

When is a Voluntary Disclosure “Timely” Under the VDP?

Timeliness is a key requirement for participating in the IRS’ Voluntary Disclosure Practice (VDP). If a taxpayer’s disclosure is not timely, the taxpayer is not eligible to participate in the VDP—but the IRS can use the taxpayer’s disclosure for purposes of pursuing civil or criminal enforcement.

So, when is a voluntary disclosure considered “timely”?

As the IRS explains, three criteria determine whether a voluntary disclosure is timely. A voluntary disclosure will be considered “timely” if it is made:

• Before the IRS opens an audit or IRS Criminal Investigation (IRS CI) opens an investigation;
• Before the IRS receives relevant information from a third party; and,
• Before the IRS receives relevant information through another law enforcement action (i.e., a DOJ search warrant or federal grand jury subpoena).

When you are considering a voluntary disclosure, one important consideration (among many) is that you may not know whether an investigation is underway or whether the IRS has received information about your noncompliance from another source. If you hire an experienced Washington, D.C. international tax attorney to represent you, your attorney can engage with the IRS on your behalf and determine whether you are eligible to seek a resolution through the VDP.

How Thorn Law Group Can Help

We have extensive experience helping taxpayers resolve willful tax law violations with the IRS. If you need to consider a voluntary disclosure, we can help you make an informed decision and communicate with the IRS on your behalf as warranted. While timeliness is one key factor for VDP eligibility, other factors matter too—and it is critical to consider all of them before deciding how to proceed.

Contact Washington D.C. International Tax Attorney Kevin E. Thorn

To discuss your options with Washington, D.C. international tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence, contact us today. Call us at 202-349-4033 or tell us how we can reach you online to arrange a confidential consultation as soon as possible.