Coming Clean with the IRS

If you’ve got some skeletons that are hiding and you are concerned about the IRS finding out about them and making your life truly miserable, you may wish to consider what’s called the Voluntary Disclosure Practice (VDP). VDP is an IRS program where taxpayers can disclose willful misconduct, submit accurate original or amended returns, and pay any outstanding taxes and interest. In exchange, the IRS usually (note the word usually) agrees not to refer the matter for criminal prosecution.  

To qualify under the VDP, taxpayers must meet certain requirements. These include timeliness, cooperation and full and adequate disclosure. This only works when you come forward first. You cannot qualify if you are already under criminal investigation. So, what this comes down to is, if you’ve been playing some pretty nasty games taxwise, and you are getting nervous about it, you can voluntarily disclose your wrongdoings and make amends. However, you must do this before the IRS gets on to you. Most importantly, if you are going to do this, make sure you have the proper tax representation; almost certainly legal representation.

If you have any questions contact Kal Barson at kal@barsongroup.com.