The Streamlined Foreign Offshore Procedures is a type of amnesty program to help expat taxpayers who may not have been aware of their U.S. tax filing obligation and have therefore fallen years behind on their filing.
Many of the amnesty programs previously available are no longer offered, and it is certainly possible that the Streamlined filing option will be discontinued at some point in the near future.
Given this, and the many changes happening under recent Tax Reform — not to mention potential penalties for non-compliance — we urge you to move forward with your tax filing as soon as possible.
Whether you are interested in Streamlined Procedure as an option, or simply looking to file one or two years of back taxes, we are here to help.
Eligibility Requirements
Our tax professionals can review your situation to confirm eligibility for Streamlined Foreign Offshore Procedures (SFOP). Current core requirements include (summarized*):
- ✓ Non-Residency: In at least one of the last three delinquent tax years, the individual was physically outside the U.S. for at least 330 full days, and did not have a permanent abode in the U.S. (U.S. citizens and lawful permanent residents (green-card holders) use this 330-day test. Individuals who are neither U.S. citizens nor green-card holders instead meet this requirement by not satisfying the Substantial Presence Test.)
- ✓ Non-Willfulness: All previous non-compliance—including failure to report income from foreign financial assets or file FBARs—was due to oversight or mistake, not intentional evasion.
- ✓ No Active IRS Action: The individual is not currently under IRS audit or criminal investigation for any tax year.
*This is a summary for informational purposes and does not constitute legal or tax advice.
Submission Requirements
If eligibility is met, our team will assist you with the following "catch-up" filing package:
- ✓ Income Tax Returns: Preparation of delinquent or amended tax returns for the most recent 3 years for which the official due date has passed.
- ✓ FBAR Reports: Submission of Foreign Bank and Financial Account Reports (FinCEN Form 114) for the most recent 6 years.
- ✓ Non-Willful Certification: Form 14653 (Certification by U.S. Person Residing Outside of the United States), in which you certify under penalty of perjury that your failure to report income, pay tax, and file required returns was due to non-willful conduct.
- ✓ Payment & Interest: Taxpayers must pay any outstanding tax liability plus statutory interest. However, under this program, all other non-compliance penalties are typically waived.
*This summary is for informational purposes and does not constitute legal or tax advice.