Taxpayers who are willing to certify that their failure to report foreign financial assets and the related income was non-willful may be eligible to make a disclosure under one of the new Streamlined Offshore Programs. There are two different programs available, one for non-resident U.S. taxpayers, and one for resident U.S. taxpayers.
Non-Resident Versus Resident
Non-resident U.S. taxpayers who submit a complete and accurate submission under the Streamlined Offshore Foreign Program will be eligible for a complete waiver of any civil penalties related to the failure to file FBARs or other information reporting forms. Resident U.S. taxpayers who submit a complete and accurate submission under the Streamlined Offshore Domestic Program will be eligible for a penalty of 5% of the highest aggregate value of all undisclosed assets over a six year period.
To participate in either the Streamlined Offshore Foreign or Domestic Program:
- Taxpayers must submit three years of amended returns along with the related information reporting returns, as well as six years of FBARs.
- Taxpayers will also be required to submit a Certification Statement, available on the IRS website,
- Taxpayers will be required to pay the additional tax and interest on three years of amended returns, but will be exempt from paying any tax-related penalties such as the failure-to-pay, failure-to-file, or accuracy-related penalties.
Notably, Resident U.S. taxpayers must have filed tax returns for the three most recent years for which a tax return due date, or properly extended due date, has passed. In other words, if you have not filed tax returns for the past three years, then you are not eligible to participate in the Streamlined Offshore Domestic Program.
Contact Our Knowledgeable Offshore Account Legal Team
The expert team of attorneys, CPAs and former IRS agents at Brown, PC are available to answer any additional questions about new streamlined offshore programs. Contact our Dallas-Fort Worth based tax lawyers at 817-870-0025 or toll free at 888-870-0025 for a consultation. Our law firm represent clients both nationally and internationally.Print this Page