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Voluntary Disclosure Practice

For taxpayers whose tax, tax-related, and FBAR noncompliance may be viewed as willful or fraudulent by the IRS, Dan can assist them to navigate the process of “coming clean” with the government and avoiding criminal prosecution for tax and tax-related crimes.

In a nutshell, the IRS’ voluntary disclosure practice provides a path for taxpayers to confess their misconduct to the IRS in exchange for a soft assurance that IRS Criminal Investigation will not refer them to the Department of Justice for prosecution. Taxpayers must confess to the IRS before the government becomes aware of their tax or tax-related noncompliance (known as “timeliness”). If a taxpayer meets the timeliness requirement, then the taxpayer provides a written mea culpa to the IRS outlining their tax misdeeds. Dan’s government background with the voluntary disclosure practice brings unique expertise in assisting taxpayers with this process of coming clean. 


Dan’s experience with the Office of Chief Counsel of the IRS included extensive work in revising the IRS’ voluntary disclosure practice. Beyond working on the revisions to the voluntary disclosure practice, Dan also closely coordinated with all IRS operations involved in the voluntary disclosure practice—including Criminal Investigation’s headquarters personnel handling preclearance and preliminary acceptance, civil examiners handling audits, and revenue officers involved with cases involving less than full payment of tax liabilities. Dan helped develop the template closing agreements revenue agents use to resolve cases and reviewed all closing agreements for all voluntary disclosure practice cases for a period of time.


It may be worth considering making a voluntary disclosure to the IRS if you think someone will contact the IRS with allegations you committed tax fraud. For example, a disgruntled employee, a former lover, an opponent in civil litigation, or someone else with an axe to grind against you may have access to your sensitive financial information and attempt to become a paid IRS whistleblower. You may have time to act and make a voluntary disclosure before the whistleblower turns your information over to the IRS. 


Is the voluntary disclosure practice the right compliance option for you? Contact Dan for a consultation. 


Are you a tax attorney who has never handled a voluntary disclosure practice case, but you have a client who needs to come clean? Contact Dan to discuss including him as co-counsel to assist your client.

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