Several taxpayers sued the IRS to remove them from the OVDP program and allow them entrance into the streamline program, an alternative program open to taxpayers after July 1, 2014. The government moved to bar the suit under the Anti-Injunction Act. The U.S. Court of Appeals for the D.C. Circuit agreed with the government, finding the OVDP / Streamline switch would "restrain" the government's ability to collect tax if allowed.
The taxpayers raised a number of alternative arguments including that the alternative relief provisions of the OVDP (i.e., the transitional relief) violated the Administrative Procedure Act, for failure to provide proper notice and comment as well as equal treatment of similarly situated taxpayers. It is notable that the IRS offshore voluntary disclosure programs did not receive publishing or commentary before being issued, changed and revised since their first issuance in 2009. The argument did not persuade the Court. The case is Maze v. IRS, D.C. Cir., No 16-05265. Questions regarding the various IRS Offshore Voluntary Disclosure Programs can be directed to Jim Mastracchio. Mr. Mastracchio's comments to Bloomberg BNA regarding the decision can be found in the July 17, 2017 issue of the Daily Tax Report.
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