The IRS recently revised and updated the 2012 Offshore Voluntary Disclosure Program. The modified program takes effect on July 1, 2014 and provides streamlined procedures and reduced penalties for U.S. taxpayers with foreign bank accounts.

The new streamlined procedures are available to U.S. taxpayers residing both inside and outside the United States whose failure to disclose offshore assets was non-willful.  The new procedures create an opportunity to disclose unreported accounts under terms (especially reduced penalties) that were not otherwise available under the existing 2012 Offshore Voluntary Disclosure Program.

The new procedures also provide transition opportunities for certain taxpayers enrolled in the current OVDP program (but who have not yet entered into a closing agreement) and others who have made quiet disclosures.

The IRS announcement of the modified program can be found here.