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2011 IRS Offshore Voluntary Disclosure Initiative Update: Beware Misapplication of Checks

Posted on December 29th, 2011 | Author: Norris McLaughlin & Marcus

Some Offshore Voluntary Disclosure Initiative (“OVDI”) Clients have sent us letters from the Internal Revenue Service (“IRS”) with the following language:

Dear X:

We have received a payment of $x from you but we do not know where to apply it.  Please respond to this letter within thirty days.

This has happened even in cases where client has clearly marked on the check that it is payment for the OVDI penalty or for amended returns within the OVDI program. This is not a cause for concern, and merely requires a response to the address on the letter indicating where the payment should be properly credited. If you have any questions, you should contact your tax advisor to discuss.