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Form 14457 (Rev. 11-2017). Form 14457. (November 2017). Department of the Treasury Internal Revenue Service. Offshore Voluntary Disclosure Letter.

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The Voluntary Disclosure Practice is a compliance option if you have committed tax or tax-related crimes and have criminal exposure due to your willful violation of the law. Taxpayers who participate in the Voluntary Disclosure Practice intend to seek protection from potential criminal prosecution.

Generally speaking, a VDP allows taxpayers to correct their tax affairs and in return for coming forward voluntarily, the tax administration offers certain incentives such as the avoidance of criminal prosecution and reduced rates of penalty and interest.

Voluntary disclosure is the process in which a delinquent taxpayer voluntarily discloses income information or other relevant tax information that was not previously reported.

Companies might increase their voluntary disclosure in order to raise capital more cheaply on the markets. This will increase transparency and reduce information asymmetries between the company management and market participants.

The IRS voluntary disclosure program provides a way for taxpayers with previously undisclosed income to contact the IRS and resolve their tax matters. This program does not apply to taxpayers whose income is derived from illegal activities. The voluntary disclosure practice is a longstanding practice of IRS.

Offshore Penalties Under the updated IRS Voluntary Disclosure procedures the taxpayer does not have a set penalty. Rather, the IRS agent will follow the rules of the IRM (Internal Revenue Manual). Under the IRM, a person is (generally) subject to a 50% penalty on the highest year's unreported balance.

The IRS Voluntary Disclosure Program is a Federal Government program that provides Taxpayers an opportunity to disclose previously unreported offshore income, assets, investments, and accounts to the Internal Revenue Service — and resolve their foreign and US tax matters.

Types and examples Voluntary disclosures can include strategic information such as company characteristics and strategy, nonfinancial information such socially responsible practices, and financial information such as stock price information.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232