Update from the OVDP Hotline from Agent Bayer

1. The IRS has recognized that the penalty base in SDOP could potentially be broader than that what was in OVDP, but mentioned they did not have any concrete information on this currently...it would be best to wait for IRS notices or just check the SDOP webpage regularly.
2. She said that no one has to necessarily "qualify" for SDOP or SFOP. Just follow the instructions and submit your returns & FBARs accordingly, along with the NW certification, penalty check, and income taxes with interest, and that would be it. There would be no examiner assigned, no 906 closing statement....nothing.
3. Those who transition from OVDP would need approval to go into SDOP/SFOP,  however, once granted approval, they also would not receive any 906 once their case is completed in SDOP/SFOP. She specifically mentioned that the taxpayer would be leaving OVDP were they to be granted approval to go into SDOP/SFOP. This makes sense as the taxpayer has to sign the NW certification, which would not be needed were the taxpayer to remain in OVDP and enjoy the willful protection that the program provides to a OVDP participant.
4. IRS examiners are calling their open OVDP cases to make them aware of the transition options and FAQs
5. "Old" submissions under OVDP would not hold as that was based on the highest aggregate balance.
You would have to recalculate the year end balance per the SDP requirements.This may marginally help the taxpayer , but now you have to do another 8 years of calculations X number of accounts .
6. The Transition package would be reviewed by the agent, technical advisor, agent's manager AND a commitee.
7. Though the certification form asks for year end balances (different than high balance, and eliminates need to account for interbank transfers as you are taking a snapshot of one day) the penalty base also includes tax-compliant unreported foreign accounts, as well as foreign stocks/bonds not held in a financial account.