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Voluntary Disclosure for Maryland Residents:
Correct Past Tax Mistakes & Find Peace of Mind
Failing to report foreign income or assets can have serious consequences, but it’s not too late to get back on track. Maryland residents facing IRS compliance issues can find relief and potentially reduce their penalties through voluntary disclosure programs.
Contact Tax Relief Counsel today to schedule a free consultation and learn how we can help you get a fresh start.
Tax Relief Counsel: Your Guide to Voluntary Disclosure in Maryland
Tax Relief Counsel helps Maryland residents successfully navigate the voluntary disclosure process, guiding them towards lawful compliance and peace of mind.
Ramy Shabana, our founder and dedicated tax lawyer, is committed to providing personalized legal strategies, minimizing the potential penalties clients face, and securing the best possible outcome for their unique situations.
Past tax mistakes can come back to haunt you if you aren’t careful. Luckily, it’s possible to rectify your situation. Reach out to Tax Relief Counsel for a free, confidential consultation.
Understanding Voluntary Disclosure in Maryland
Voluntary disclosure is a formal process in which taxpayers come forward to the IRS to correct past non-compliance with foreign account and income reporting requirements. While this step doesn’t guarantee complete penalty relief, it can significantly improve your chances of a favorable outcome compared to the IRS discovering your non-compliance on its own.
Is Voluntary Disclosure Right for You?
Voluntary disclosure is for U.S. taxpayers (including Maryland residents) who haven’t fully complied with reporting requirements for foreign financial assets and income. This includes situations like:
- Failing to report income from a foreign trust.
- Not disclosing ownership in an offshore corporation.
- Neglecting to file FBARs for foreign bank accounts exceeding $10,000.
If any of these describe your scenario, seeking legal guidance is crucial.
Why Choose Voluntary Disclosure?
The IRS actively pursues taxpayers with unreported foreign assets. Waiting for them to find you can result in hefty penalties, including substantial fines, asset seizures, and even criminal prosecution.
By opting for voluntary disclosure, you can demonstrate good faith to the IRS, take control of the situation, and potentially reduce the penalties you face. In most cases, voluntary disclosure also helps negligent taxpayers avoid criminal charges.
Facing an IRS Inquiry? Act Now Before It's Too Late
The IRS has been cracking down on undisclosed foreign accounts. Voluntary disclosure can help you sidestep the harshest penalties.
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IRS Voluntary Disclosure Programs: Finding the Right Path for You
The IRS offers several voluntary disclosure programs designed to address different circumstances and levels of non-compliance.
Streamlined Foreign Offshore Procedures (SFOP)
For U.S. taxpayers living abroad who have not filed required tax returns and FBARs for foreign accounts. It addresses non-willful non-compliance and usually requires filing amended returns for three years and FBARs for six years. Penalties are typically limited.
Streamlined Domestic Offshore Procedures (SDOP)
For U.S. taxpayers residing in the U.S. who have not filed required tax returns and FBARs for foreign accounts. It addresses non-willful non-compliance and, like SFOP, usually requires filing amended returns for three years and FBARs for six years with limited penalties.
Voluntary Disclosure Practice (VDP)
The VDP is for taxpayers who demonstrate willful non-compliance, meaning they knew or should have known about their reporting obligations but intentionally didn’t comply. It involves filing amended returns and FBARs for multiple years and paying back taxes, interest, and a higher penalty than SFCP.
Delinquent FBAR Submission Procedures
This option is specifically for taxpayers who only failed to file their FBARs on time. It requires you to submit delinquent FBARs for the past six years and provide an explanation for the late filing.
Delinquent International Information Return Submission Procedures
This program is for taxpayers who failed to file other required international information returns, such as Forms 5471, 3520, or 8938, on time. It allows taxpayers to come forward and file these delinquent returns without facing the full range of penalties they might otherwise incur.
Choosing the Right Voluntary Disclosure Program
Selecting the appropriate program is crucial for achieving a successful outcome. We can help determine your eligibility for each program and guide you toward the best path for your specific situation.
The High Cost of Non-Compliance: Potential Penalties for Undisclosed Foreign Assets
Failing to report foreign income or assets to the IRS can have severe financial and legal repercussions. Here are some of the penalties you could face:
Civil Penalties
The IRS can impose significant fines for each year you fail to properly report your foreign accounts and income. These penalties can range from thousands to tens of thousands of dollars per violation. For example, failing to file a required FBAR can result in fines of up to $10,000 (adjusted for inflation) per year per violation.
Accuracy-Related Penalties
If the IRS finds inaccuracies or omissions on your tax returns related to foreign income or assets, you could be subject to additional penalties. These can be as high as 20% of the underpayment.
Fraud Penalties
The penalties can be even more harsh in cases of intentional tax evasion or fraud. They include a fine of up to 75% of the underpaid tax amount.
Criminal Prosecution
In the most serious cases, the IRS can pursue criminal charges for tax evasion. This course of action could result in substantial fines and even imprisonment.
The seriousness of the penalties often depends on factors like the amount of unreported income, the type of foreign account or asset, and whether your non-compliance was willful or non-willful.
Take the First Step Toward a Fresh Start
Don’t wait for the IRS to discover your non-compliance. Contact Tax Relief Counsel today to schedule a free, private consultation with Ramy Shabana, our Maryland voluntary disclosure lawyer. Ramy will take the time to assess your situation, explain your options, and guide you toward a favorable resolution.
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Worried About Undisclosed Foreign Assets?
Dodging the IRS will only make things worse. Get a free consultation and find out how voluntary disclosure can benefit you.
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How Our Voluntary Disclosure Lawyer in Maryland Can Help
At Tax Relief Counsel, we understand the delicate nature of voluntary disclosure and the anxiety it can cause. Our team offers reliable guidance and support throughout the process, making your journey to compliance as smooth and stress-free as possible. Here’s what you can expect when you work with us:
Confidential Consultation
We’ll start with a one-on-one consultation to better understand your unique situation. During this meeting, we’ll gather information about your financial history, foreign assets, and any prior interactions you’ve had with the IRS.
Thorough Case Assessment
Next, our attorney will meticulously analyze your circumstances, reviewing prior tax filings, foreign accounts, and any relevant IRS communications. This will allow us to develop a tailored strategy and determine the most advantageous option for you.
Strategic Program Selection
We’ll guide you toward the appropriate program, whether it’s the SFOP, SDOP, VDP, or delinquent FBAR submission procedures.
Professional Preparation
Our experienced team will meticulously prepare all necessary forms and documentation, including amended tax returns, FBARs, and other required disclosures, to ensure accuracy and compliance.
Dedicated Advocacy and Negotiation
We’ll act as your advocate throughout the entire process, handling all necessary communication and negotiations with the IRS. We’ll push for reduced penalties and work to secure a favorable resolution for your case.
Why Choose
Tax Relief Counsel for Voluntary Disclosure?
We’re committed to helping Maryland residents overcome difficult tax challenges and gain financial clarity. Here’s why we’re the right choice for your voluntary disclosure needs:
Maryland-Focused
Our veteran tax attorney has a deep understanding of state and federal tax laws and can skillfully interpret the nuances of your situation.
Proven Success with Voluntary Disclosures
Our impressive track record speaks to our ability to achieve favorable outcomes for clients facing a wide variety of tax complications.
Personalized Approach
We believe in building strong client relationships. We'll always provide clear explanations, tailored strategies, and regular updates throughout the process.
Focus on Minimizing Penalties
We don’t think you should have to pay for an honest mistake. We aggressively advocate for our clients, working to reduce their penalties and minimize the financial repercussions of past non-compliance.
Frequently Asked Questions
Is it too late to make a voluntary disclosure?
While it’s never truly too late to make a voluntary disclosure, the sooner you come forward, the better. However, if the IRS has already initiated an investigation or contacted you about your foreign accounts, your options may be limited.
Will I go to jail for making a voluntary disclosure?
Voluntary disclosure can significantly reduce the chances of criminal prosecution, though this is never a guarantee. By proactively addressing your non-compliance, you demonstrate good faith to the IRS, which typically prefers to resolve these matters through civil penalties.
What happens if my voluntary disclosure is rejected?
If the IRS rejects your disclosure, our tax attorney will work with you to understand the reasons for the rejection and explore all available avenues, such as submitting a revised disclosure, appealing the decision, or considering alternative tax relief solutions.
Secure Your Financial Future: Contact Us Today
Don’t let past misjudgments hold you back — take control of your situation and get the peace of mind you deserve. Contact Tax Relief Counsel today to schedule a free, no-obligation consultation. We’ll assess your circumstances, explain your options, and help you find a way out.
(202) 630-4095