Unintentionally missing correct tax payments can be stressful and have grave consequences. The IRS Voluntary Disclosure Program offers a way to come clean about previously undisclosed income or assets. This program allows taxpayers to avoid criminal prosecution and potentially reduce penalties by voluntarily reporting their tax liabilities.
Who can apply for the program?
To be eligible for the IRS Voluntary Disclosure Program, you must meet several criteria:
- Your disclosure must be voluntary, meaning you come forward before the IRS contacts you about an investigation.
- You must provide all information about previously undisclosed income or assets.
- The disclosure should be timely, accurate, and complete.
You must also be willing to cooperate fully with the IRS to determine your correct tax liability.
What to do if you are eligible
If you believe you are eligible for the IRS Voluntary Disclosure Program, you must gather all relevant financial documents like bank statements and tax returns. Next, you must submit a preclearance request to check your eligibility. Once they grant your preclearance, you must complete the voluntary disclosure by submitting Form 14457 and all required documentation.
Before proceeding with any of these steps, you may want to consult a legal professional or an accountant to understand the process and implications. The IRS may ask further questions or additional information to resolve your tax liability.
Clearing tax issues
Understanding the IRS Voluntary Disclosure Program can be complex and complicated. However, participating in this program can be a valuable opportunity to rectify past tax mistakes and avoid severe penalties, especially if the case could potentially lead to tax fraud. With professional legal support, you can focus on resolving your tax issues and moving forward with peace of mind.
