California Attorney for Voluntary Disclosures to the IRS

Navigating the IRS Voluntary Disclosure Program

For business owners and high-net-worth individuals, IRS tax compliance is a critical concern. If you have undisclosed income, unreported offshore accounts, or outstanding tax liabilities, the IRS Voluntary Disclosure Program (VDP) offers a structured way to come into compliance while mitigating severe penalties and potential criminal charges. At NewPoint Law Group, LLP, our experienced California voluntary disclosure attorneys provide expert legal counsel to businesses and individuals seeking to navigate this complex process.

What is the IRS Voluntary Disclosure Program?

The IRS Voluntary Disclosure Program (VDP) allows taxpayers who willfully failed to comply with tax laws to come forward before the IRS detects their noncompliance. The program provides an opportunity to disclose previously unreported income, correct underpaid taxes, and avoid criminal tax prosecution.

Taxpayers who qualify for the program must fully disclose their noncompliance, file amended or delinquent returns, and pay outstanding tax liabilities, including interest and penalties. While the program does not guarantee immunity from all penalties, it significantly reduces the risk of criminal investigation and severe financial consequences.

Types of Voluntary Disclosures

The IRS Voluntary Disclosure Program covers a range of tax issues, including:

• Domestic Tax Noncompliance – Failing to report business income, underreporting profits, improper deductions, and other tax avoidance measures.

• Foreign Accounts and FBAR Violations – Failing to report offshore bank accounts, foreign income, or assets exceeding $10,000, subject to FBAR (FinCEN Form 114) requirements.

• Cryptocurrency Disclosures – Unreported cryptocurrency transactions and offshore digital assets.

• Employment and Payroll Tax Issues – Businesses failing to withhold or pay payroll taxes, misclassifying employees, or improperly claiming tax credits.

• Estate and Gift Tax Noncompliance – Failing to report large gifts or assets transferred outside standard tax regulations.

Each of these categories requires specialized legal expertise to ensure full compliance while minimizing financial exposure.

Who is Eligible for the Voluntary Disclosure Program?

To qualify for the IRS Voluntary Disclosure Program, taxpayers must:

• Have engaged in willful tax noncompliance that could result in criminal liability.

• Come forward before the IRS initiates an audit, investigation, or enforcement action.

• Provide full cooperation, including disclosing all previously unreported tax liabilities.

• Pay all taxes owed, along with interest and penalties, as determined by the IRS.

Businesses and individuals who unknowingly failed to report income or accounts may qualify for alternative Streamlined Filing Compliance Procedures, which carry lower penalties.

How Disclosing Benefits Business Owners and Individuals

Choosing to disclose voluntarily provides multiple advantages, including:

• Avoidance of Criminal Charges – The IRS views voluntary disclosure as a sign of good faith, reducing the likelihood of criminal prosecution for tax fraud or evasion.

• Reduced Civil Penalties – While penalties still apply, they are generally lower than if the IRS discovers noncompliance through an audit or investigation.

• Structured Resolution – The VDP offers a formal process for correcting tax issues, avoiding drawn-out legal battles and aggressive enforcement actions.

• Protecting Business Operations – For companies with payroll or corporate tax issues, voluntary disclosure prevents business disruption due to IRS enforcement.

• Mitigating FBAR Penalties – For taxpayers with unreported offshore accounts, voluntary disclosure can prevent excessive penalties of up to 50% of the highest account balance per violation.

What Happens If You Don’t Disclose?

Failing to report tax liabilities or offshore assets can lead to severe financial and legal consequences, including:

• Criminal Prosecution – Willful tax evasion can result in federal charges, fines of up to $250,000, and imprisonment.

• Higher IRS Penalties – Noncompliant taxpayers face accuracy-related penalties, failure-to-file penalties, and in severe cases, civil fraud penalties of up to 75% of unpaid taxes.

• Loss of Assets – The IRS has broad powers to seize bank accounts, business assets, and personal property through tax liens and levies.

• FBAR & FATCA Penalties – Undisclosed offshore accounts may trigger penalties of up to 50% of the account balance per year, potentially exceeding the value of the account itself.

• Increased IRS Scrutiny – Once the IRS identifies noncompliance, taxpayers face audits, investigations, and ongoing monitoring, further complicating their financial situation.

Avoiding voluntary disclosure increases the risk of discovery through FATCA (Foreign Account Tax Compliance Act) compliance, whistleblower programs, or IRS data analytics, leading to harsher penalties.

Why You Need an Experienced Voluntary Disclosure Attorney

Navigating the IRS Voluntary Disclosure Program is complex and requires careful legal and financial strategy. At NewPoint Law Group, LLP, our seasoned tax attorneys have extensive experience assisting business owners, corporations, and high-net-worth individuals with voluntary disclosures.

We provide:

Comprehensive Case Analysis – Evaluating eligibility and recommending the best disclosure strategy.

Negotiation with the IRS – Advocating for reduced penalties and a favorable resolution.

Asset Protection Strategies – Minimizing financial exposure while maintaining compliance.

Confidential & Strategic Representation – Ensuring the highest level of legal protection during the disclosure process.

Attempting to navigate voluntary disclosure alone can result in missteps that trigger audits or increased penalties. Our experienced attorneys help ensure full compliance while minimizing risks and liabilities.

Call Today – Protect Your Business & Financial Future

If you have undisclosed tax liabilities, offshore accounts, or other compliance concerns, time is of the essence. The IRS actively pursues noncompliant taxpayers, and delaying disclosure could lead to criminal charges, asset seizures, and higher penalties.

At NewPoint Law Group, LLP, our California attorneys for voluntary disclosures to the IRS serve clients in Roseville, Sacramento County, and Placer County. We provide expert legal guidance to help you achieve compliance while protecting your financial interests.

Call us today at (800) 358-0305 for a confidential consultation.

Don’t wait for the IRS to find you, take control of your tax situation now with the experienced attorneys at NewPoint Law Group, LLP.

Serving Roseville, Placer County, and Sacramento County