06/15/2011 10:39:00 AM EST
Opting Out of the IRS 2009 OVDP and 2011 OVDI
by John A. "Jack" Townsend, Townsend & Jones LLP
... The fear among taxpayers and practitioners is that the IRS will be punitive in its application of the penalty structure. We don't know yet whether the fear will be realized.
... I link to the referenced Opt Out and Removal Guide for the 2009 OVDP and 2011 OVDI.
[The] 2011 OVDI FAQ 5 (as updated 2/14/11)... provides the range of penalties that the IRS could apply on the opt out (FAQ 5 actually deals with the penalties that could apply if the taxpayer does not get into the program, but they are the same as could apply on an opt out when the taxpayer is subject to examination).
I link to prior blog entries that have had some opt out discussions: IRS Updates and Expands 2011 OVDI FAQs - Extension of 8/31/11 Deadline, Opting Out & 5% Penalty (6/3/11) [and] To OVDI or Not to OVDI - That is the Question (Of Quiet Disclosures and Doing Nothing) (5/23/11).
View Jack Townsend's blog analysis in its entirety on the Federal Tax Crimes site.
For additional insight, explore Tax Crimes, authored by Jack Townsend, available in the LexisNexis® Store.
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