Question – Are the IRS Streamlined Procedures a permanent feature of the IRS?Īnswer – No. While the Streamlined Procedures is the most popular tax amnesty program, there are a number of additional options available to delinquent taxpayers.įor example, there are special procedures for taxpayers who have only failed to file FBARs. Question – Are the IRS Streamlined Procedures my only option for tax amnesty?Īnswer – No.
Unpaid taxes and interest must be paid, if due, but in many cases, taxpayers can utilize the Foreign Earned Income Exclusion and/or foreign tax credits to reduce or eliminate taxes due. In order to qualify, a taxpayer must fulfill a non-residency requirement and certify that that the failure to report all income, pay all tax, and submit all required information returns, including FBARs, resulted from non-willful conduct. A taxpayer who qualifies for the foreign offshore Streamlined Procedures can come clean with the IRS and suffer no penalties. Question – Can I completely reduce or avoid penalties under the IRS Streamlined Procedures?Īnswer – Yes. Under the Streamlined Procedures, taxpayers are required to file only the prior 3 years of tax returns, including required information returns, and 6 years of FBARs. The IRS recognized that gathering financial information about the distant past can be cumbersome, if not impossible, so in order to encourage disclosure, it limited the tax years that require filing. One of the main benefits of participating in the Streamlined Procedures is that you can become completely compliant with your expat taxes without having to disclose your entire past. Question – Do I need to disclose my entire tax history?Īnswer – No. The latest IRS statistics show that the Streamlined Procedures continue to be a popular and effective method for delinquent taxpayers to catch up with the IRS. According to the IRS, tens of thousands of taxpayers have used the Streamlined Procedures to resolve their tax issues. This lenient approach has allowed many delinquent taxpayers to successfully enter its amnesty programs. Back in 2014, the IRS expanded the Streamlined Procedures, allowing taxpayers to participate if they can explain in a written statement how their delinquency was not intentional. In recent years, the IRS has made it clear to taxpayers that it is more interested in disclosure than in punishing late filers or non-filers. Question – Is tax amnesty rarely granted by the IRS?Īnswer – No. The more you know about the program, the better you can decide whether the IRS Streamlined Procedures are the best path towards amnesty for your particular circumstances. The following are some the more frequently asked questions that we receive about the IRS Streamlined Procedures. If married taxpayers submitting a joint certification have different reasons, provide the individual reasons for each spouse separately in the statement of facts (this requirement was also previously included).
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