IRS Streamlined Filing Compliance Procedures

The IRS Streamlined Filing Compliance Procedures allow U.S. persons whose failure to report foreign accounts, income, trusts, or companies was non-willful to come into compliance with reduced or no penalties. Auric Private Client Advisory LLC prepares complete Streamlined submissions. Write to streamlined@auricllc.com to discuss your situation.

Streamlined Foreign Offshore Procedures

Summary

Brings U.S. citizens or permanent residents (green-card holders) living outside the United States into U.S. tax compliance with the IRS.
Three (3) years of U.S. tax returns, six (6) years of FBARs, and a certification.
Tax and interest are due for the three years of U.S. tax returns.
No penalties of any kind.

Covers

U.S. citizens or green-card holders living outside the United States.
“Accidental Americans” born in the United States or to a U.S. parent.
Non-U.S. bank, brokerage, pension, or insurance accounts never reported.
Non-U.S. inheritances or gifts never reported.
Grantor (owner) or beneficiary of a non-U.S. trust or foundation never reported.
Interest in a non-U.S. company or partnership never reported.

Eligibility

Non-resident. No U.S. abode and at least 330 full days outside the United States in any one of the last three tax years.
Non-willful. Negligence, inadvertence, mistake, or a good-faith misunderstanding of the law.
No IRS contact. No IRS examination or criminal investigation under way.

Filing Requirements

Three (3) years of delinquent or amended U.S. income tax and information returns.
Six (6) years of FBARs (FinCEN Form 114).
Form 14653 certification of non-willful conduct.
Full payment of tax and interest.

Penalty

None: no failure-to-file, failure-to-pay, accuracy-related, information return, or FBAR penalties.
No miscellaneous offshore penalty.

IRS resources: Streamlined Foreign Offshore Procedures and frequently asked questions.

Streamlined Domestic Offshore Procedures

Summary

Brings U.S. citizens and non-U.S. citizens who have filed U.S. tax returns and live in the United States into U.S. tax compliance with the IRS regarding foreign income and information reporting matters.
Three (3) years of amended returns, six (6) years of FBARs, and a certification.
Tax and interest are due for the three years of U.S. tax returns.
A 5% miscellaneous offshore penalty in lieu of any other applicable penalty.

Covers

U.S. citizens and non-U.S. citizens living in the United States.
Non-U.S. bank, brokerage, pension, or insurance accounts never reported.
Non-U.S. inheritances or gifts never reported.
Grantor (owner) or beneficiary of a non-U.S. trust or foundation never reported.
Interest in a non-U.S. company or partnership never reported.

Eligibility

U.S. resident. U.S. tax returns filed for each of the last three years; non-residency test for the Streamlined Foreign Offshore Procedures not met.
Non-willful. Negligence, inadvertence, mistake, or a good-faith misunderstanding of the law.
No IRS contact. No IRS examination or criminal investigation under way.

Filing Requirements

Three (3) years of amended U.S. income tax and information returns.
Six (6) years of FBARs (FinCEN Form 114).
Form 14654 certification of non-willful conduct and penalty computation.
Full payment of tax, interest, and the 5% miscellaneous offshore penalty.

Penalty

5% penalty applied to the year with the highest aggregate year-end value for unreported foreign financial assets during the six-year period.
Miscellaneous offshore penalty applied in lieu of other applicable penalties, which generally would be significantly higher.

IRS resources: Streamlined Domestic Offshore Procedures and frequently asked questions.

Why Auric Private Client Advisory LLC

More than 25 years of U.S. international tax practice; senior-level involvement on every matter.
Independent assessment of non-willfulness before anything is filed.
Complete IRS submission prepared: returns, information returns, FBARs, the penalty computation where applicable, and the Form 14653 or Form 14654 narrative.

Further reading: Unreported Foreign Accounts, Trusts, or Companies? The IRS Streamlined Filing Compliance Procedures Remain the Way Back Into Compliance.

Download our one-page summary of both procedures: Streamlined Procedures Summary (PDF).

Contact

Milan Solarz-Patel, Founder & Chief Tax Advisor
Auric Private Client Advisory LLC
E-mail: streamlined@auricllc.com | Website: www.auricllc.com