The IRS has modified the Offshore Voluntary Disclosure Program (OVDP), along with some of the features of the Foreign Account Tax Compliance Act (FATCA) for Americans living overseas. Due to the strict implementation of FATCA, taxpayers who have undisclosed assets and income in overseas banks accounts can use OVDP to gain back compliance, and face less severe penalties. Forbes shares the details about the changes made to the OVDP.

“The IRS has provided significant guidance regarding the modifications to the OVDP and the revisions to the SFCP. Important links to this information include:

“IRS Offshore Voluntary Disclosure Efforts Produce $6.5 Billion; 45,000 Taxpayers Participate (FS-2014-6, June 2014). IRS offshore voluntary disclosure programs are designed to encourage taxpayers with undisclosed offshore assets to become current with their tax liabilities. The latest series of voluntary programs began in 2009. Overall, the three voluntary programs have resulted in more than 45,000 voluntary disclosures from individuals who have paid about $6.5 billion in back taxes, interest and penalties. Highlights of the different variations of the IRS offshore efforts since 2009 are discussed at http://www.irs.gov/uac/Newsroom/IRS-Offshore-Voluntary-Disclosure-Efforts-Produce-$6.5-Billion;-45,000-Taxpayers-Participate

“IRS Makes Changes to Offshore Programs; Revisions Ease Burden and Help More Taxpayers Come into Compliance (IR-2014-73, June 18, 2014). On June 18, 2014, the IRS announced major changes in its OVDP, providing new options to help both taxpayers residing overseas and those residing in the United States. The changes include an expansion of the streamlined filing compliance procedures announced in 2012 and important modifications to the 2012 OVDP. The expanded streamlined procedures are intended for U.S. taxpayers whose failure to disclose their offshore assets was “non-willful.” http://www.irs.gov/uac/Newsroom/IRS-Makes-Changes-to-Offshore-Programs;-Revisions-Ease-Burden-and-Help-More-Taxpayers-Come-into-Compliance

“Offshore Income and Filing Information for Taxpayers with Offshore Accounts (FS-2014-7, June 2014). U.S. citizens, resident aliens and certain nonresident aliens are required to report worldwide income from all sources including foreign accounts and pay taxes on income from those accounts at their individual rates. Taxpayers with undisclosed accounts should consider options available under the expanded streamlined filing process or the Offshore Voluntary Disclosure program. Filing and reporting requirements are generally discussed at http://www.irs.gov/uac/Newsroom/Offshore-Income-and-Filing-Information-for-Taxpayers-with-Offshore-Accounts

“Options Available For U.S. Taxpayers with Undisclosed Foreign Financial Assets. The implementation of FATCA and the ongoing efforts of the IRS and the Department of Justice to ensure compliance by those with U.S. tax obligations have raised awareness of U.S. tax and information reporting obligations with respect to non-U.S. investments. Because the circumstances of taxpayers with non-U.S. investments vary widely, the IRS describes various options for addressing previous failures to comply with U.S. tax and information return obligations with respect to those investments. http://www.irs.gov/Individuals/International-Taxpayers/Options-Available-For-U-S–Taxpayers-with-Undisclosed-Foreign-Financial-Assets”