Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
The IRS is offering people with undisclosed income from offshore accounts an opportunity to get current with their tax
returns. Taxpayers with undisclosed foreign accounts or entities should make a voluntary disclosure because it enables
them to become compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution. The
objective is to bring taxpayers that have used undisclosed foreign accounts and undisclosed foreign entities to avoid or
evade tax into compliance with United States tax laws.

2. USE OF DATA
The IRS will use this data to calculate, with a reasonable degree of certainty, the total cost of resolving all offshore tax
issues.
The IRS’s prior Offshore Voluntary Disclosure Program ( 2009 OVDP), and Offshore Voluntary Disclosure Initiative
( 2011 OVDI), which closed on September 9, 2011, demonstrated the value of a uniform penalty structure for taxpayers
who came forward voluntarily and reported their previously undisclosed foreign accounts and assets. These initiatives
enabled the IRS to centralize the civil processing of offshore voluntary disclosures and to resolve a very large number
of cases without examination

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
There are no plans at this time to use information technology as the focus is on undisclosed foreign accounts or
entitities bieng used by taxpayers

4. EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency whenever possible.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not Applicable

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not Applicable

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT
WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not Applicable

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
IRS began an open-ended Offshore Voluntary Disclosure Program (OVDP) in January 2012 on the heels of strong
interest in the 2011 and 2009 programs. This form reflects input from various external sources who are familiar with
the program and it's procedures. This request for information has taken into consideration input gathered from the
2009 and 2011 programs.
In response to the Federal Register notice (78 FR 43003), dated July 18, 2013, we received no comments during the
comment period.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not Applicable

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 U.S.C. 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not Applicable

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
Estimated Annual Responses
1)
2)
3)
4)
5)

OVDP Submission
OVDP Penalty WrkSht
OVDP Acct/Asst Stmnt
OVDP Streamline Qstnre
Statement of Dislvd Entities

Total

228,000
38,000
190,000
2,000
500

2 hours
2 hours
1 hours
2 hours
1 hours

458,500

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Time per Response

Estimated Annual burden
456,000
76,000
190,000
4,000
500
726,500

Page 5

Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register notice dated July 18, 2013, requested public comments on estimates of
cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up costs and costs
of operation, maintenance, and purchase of services to provide information. However, we did not receive any
responses from taxpayers on this subject. As a result, estimates of these cost burdens are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
Not Applicable

15. REASONS FOR CHANGE IN BURDEN
There is no change in the burden previously approved by OMB.
This submission is for renewal purposes only.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not Applicable

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
The Offshore Voluntary Disclosure Program (OVDP) is open-ended. Displaying the OMB expiration date is
inappropriate because it could cause confusion by leading taxpayers to believe that the procedures would no longer be
available. Taxpayers would not know that the Service intends to request renewal of OMB approval and obtain a new
expiration date before the old one expires.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
Not Applicable

19. REASON FOR EMERGENCY SUBMISSION

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 6

Department of the Treasury–Internal Revenue Service