If you have delinquent FBARs, you may qualify for the streamlined filing compliance procedures. The streamlined filing compliance procedures (also known as the streamlined offshore disclosure) are available to taxpayers certifying that their failure to report foreign financial assets and pay all tax due in respect of those assets did not result from willful conduct on their part. You will amend tax returns and file delinquent FBARs as part of the streamlined disclosure. The main difference between this program and the traditional OVDP is that you must be able to certify that your failure to file FBARs was due to non-willful conduct. Your streamlined disclosure could be examined by an IRS agent. If the IRS believes that your disclosure was due to willful conduct, the IRS can increase the penalties associated with the noncompliance.
The streamlined procedures are designed to provide to taxpayers with:
- a streamlined procedure for fling amended or delinquent returns;
- terms for resolving their tax and penalty procedure for filing amended or delinquent returns; and
- terms for resolving their tax and penalty obligations.
Eligibility Criteria for the Streamlined Procedures
The streamlined filing compliance procedures are designed only for individual taxpayers, including estates of individual taxpayers. The streamlined procedures are available to both U.S. individual taxpayers residing outside the United States and U.S. individual taxpayers residing in the United States.
Contact a Tax Attorney
If you have questions about FBAR compliance or the streamlined offshore disclosure program, contact a tax attorney at Disparte Law today for a free consultation.Free Consultation