Streamlined Filing Compliance Procedures - Filing of Delinquent Tax Returns
In 2012, the IRS introduced the Streamlined Filing Compliance Procedures as an alternative option to the more punitive Offshore Voluntary Disclosure Program (OVDP). This program is intended for US persons (living either inside our outside of the US) that have failed to file income tax returns and disclose their foreign financial assets in the past as a result of non-willful conduct on their part. US persons living inside the US that enter into this program will be subject to a 5% offshore penalty. Whereas, US persons living outside of the United States is not subject to these penalties.
The IRS requires that those filing under the Streamline Filing Compliance Procedures complete 3 years of delinquent federal income tax returns and 6 years of Foreign Bank Account Reports (FBAR).
We can walk you through the details of the Streamline Filing Compliance Procedures and help prepare the necessary tax returns and FBARs needed for the program. Please reach out to us to learn more.
Additional information relating to the Streamlined Filing Compliance Procedures can be found directly on the IRS website here