Streamlined Procedures
Get compliant with your tax obligations if you’re a US citizen living abroad or an expat living in the us and own undisclosed accounts, assets, investments, and income.
Have you failed to report or pay tax on worldwide income and assets?
IRS Streamlined Procedures are an efficient way to become tax compliant, avoiding criminal prosecution and minimizing penalties.
To learn more, schedule a FREE consult with us today.
as a US citizen living in a foreign country or a green card or visa holder in the us, YOU’RE REQUIRED TO:
- Report worldwide income, assets and accounts on your tax returns
- Pay tax on foreign income, and
- File tax returns on time
The IRS Streamlined Procedures are designed to bring you back into US tax and reporting compliance if you have not met the requirements above.
Become Tax Compliant with IRS Streamlined PROCEDURES
As a US taxpayer, you are legally obliged to comply with laws for timely reporting, paying, and filing taxes on your worldwide assets. Streamlined Procedures were created by the IRS in 2012 to encourage taxpayers with undisclosed worldwide income, assets, and/or foreign accounts to become tax compliant. The IRS streamlined procedures allow you to amend and file missing tax returns to enable correct reporting and pay taxes owed. If you’re caught being out of tax compliance, there are severe penalties.
Streamlined Procedures Help You
- File amended or missing tax returns together with required information returns
- Settle your outstanding tax obligations (plus any interest accrued) on income from undisclosed financial assets arising from filing amended or delinquent returns,
- File FBARs previously missing, for up to 6 years,
- Get amnesty from higher IRS penalties.
STREAMLINED PROCEDURES PENALTIES
By using Streamlined Procedures to get back into tax and reporting compliance, you get the benefit of amnesty from:
- FBAR penalties,
- Failure to file penalties,
- Accuracy-related penalties.
Are you eligible for Streamlined Procedures?
Eligible for Streamlined Procedures
- Your failure to report and/or pay tax on worldwide financial assets is due to non-willful conduct
- You’re an individual taxpayer
Not Eligible for Streamlined Procedures
- You’re unable or unwilling to certify your failure to report and/or pay tax on worldwide financial assets is due to non-willful conduct
- You’re filing taxes for a business
- You’re under audit or criminal investigation
- You failed to report income and/or pay tax on US financial assets only
Non-willful Conduct
Non-willful conduct is conduct resulting from:
- Negligence,
- Inadvertence,
- A mistake, or
- A good faith misunderstanding of the requirements of the law.
To use SFOP, you must certify your failure to report all income, pay all taxes, and submit all required information returns, including FBARs, was due to non-willful conduct.
Foreign Financial Assets
Foreign financial assets refer to assets held outside the US, including:
- Bank and investment accounts maintained by a foreign financial institution,
- Stocks and securities issued outside the US,
- An interest in a foreign retirement/pension or deferred compensation plan.
Certain assets are not considered foreign financial assets by the IRS, including:
- Real estate outside the US.
WHICH STREAMLINED PROCEDURE IS RIGHT FOR ME?
Streamlined Domestic Offshore Procedures
File missing tax returns and pay outstanding tax on foreign income, if you live in the US.
Streamlined Foreign Offshore Procedures
File missing tax returns and pay outstanding tax on foreign income, if you live outside the US.
FILE AMENDED AND DELINQUENT TAX RETURNS USING STREAMLINED PROCEDURES
Do You Know Your Us Taxpayer Obligations?
Taxpayer Obligations for US Citizens
As a US citizen, you’re required to:
- Report all worldwide income,
- File tax returns on time, including international information returns such as FBARS,
- Pay taxes owing on your worldwide income.
All US citizens must file US tax returns, even if you’re living or working outside the US.
Taxpayer Obligations for Foreign Expats in the US
As a foreign expat and US resident for tax purposes, your tax obligations are the same as for US citizens. So you’re required to:
- Report all worldwide income,
- File tax returns on time, including international information returns such as FBARS,
- Pay taxes owing on your worldwide income.
Even if you’re not a resident for tax purposes, you’re still required to file US tax returns and pay US taxes.
Resident vs Non-Resident Tax Status
You’re a US resident for tax purposes if:
- You’re a Green Card holder,
- You’re a visa holder, and you meet the substantial presence test.
Otherwise, you’re a non-resident for tax purposes.
Certain visas are exempt from the substantial presence test for a set number of years, including the J-1 visa.
Regardless of your tax resident status, you’re still required to file a US tax return.
SCOPE OF IRS STREAMLINED PROCEDURES
If you’re eligible for IRS streamlined procedures, the program enables you to become tax compliant by:
- Filing amended tax returns and international information returns for the last 3 years.
- Filing delinquent FBARs for the last 6 years
After completing the streamlined procedures, you’re expected to comply with the law for all future years and file returns according to regular US tax filing procedures.
STREAMLINED ADVISORY CAN HELP YOU GET BACK INTO TAX COMPLIANCE USING IRS STREAMLINED PROCEDURES.