Filing via the Streamlined procedure

• There are several programs in the streamlined procedure umbrella. When we review your documents, we will determine which program is best for you. The key item that would prohibit you from being allowed into the SP is whether your failure to declare your non-US bank accounts was willful.  
• That means that you 
• • A) Knew that you had to file them
  • B) Failed to file them

1. We really see no disadvantages to the SP. We think this is as good of a deal as IRS will offer and highly recommend all those who are not currently compliant to use it. 
2. We’ve helped hundreds of clients join it and have had a universal success rate.

• If you had to (but failed to) file FBARs at any point in the last 6 years, this is an ideal venue to become compliant. The key thing is that  it absolves you of substantial fees & penalties for failing to file FBARs (see https://www.taxesforexpats.com/articles/fbar-fatca/everything-you-need-but-are-probably-afraid-to-know-about-fbar-penalties.html).
• If you simply file your overdue tax return, you could also be subject to a number of penalties for late filing (see https://www.taxesforexpats.com/articles/tax-rules/what-if-you-don-t-file-your-expat-tax-return-irs-fees-penalties.html). Streamlined Procedure absolves you of the failure-to-file and failure-to-pay penalties and accuracy-related penalties.
• The higher cost of the program when compared with simply filing 3 years of returns (roughly $350) is really not that much in the context of fees you stand to avoid (which could run as high as 50% of the balance in unreported accounts).
• You can find more details about the program on this page: https://www.taxesforexpats.com/services/new-irs-program-delinquent-taxes.html
• For details about FBAR / FATCA forms that must be filed, please see https://www.taxesforexpats.com/articles/fbar-fatca/foreign-account-reporting-on-forms-fincen-114-fbar-and-8938-fatca-and-the-differences-between-them.html

1. The US treasury requires that US Citizens/GC Holders remain current and compliant with FBAR requirements for the last 6 years. Your filing option depends on whether you had non-reported interest from foreign bank accounts and whether you are subject to additional reporting requirements.

    

   1. If interest from foreign bank accounts was reported on the original returns - File FBAR through the Delinquent FBAR Submission Procedure http://www.irs.gov/Individuals/International-Taxpayers/Delinquent-FBAR-Submission-Procedures without amending tax returns. Cost - $450 for 6 years of filing (up to 5 accounts per year).  
       
   2. If interest from accounts was not reflected on your filed tax returns; file amended returns and FBAR reports through the Streamlined Foreign Offshore Procedure: http://www.irs.gov/Individuals/International-Taxpayers/U-S-Taxpayers-Residing-Outside-the-United-States.  Cost - $1300/$1500 for the SP package + $360 ($100 X 3 * 20% discount for multiple years) and $300 for Streamlined Certification Letter.
       
   3. If form 8938 (Statement of Specified Foreign Asssets) aka FATCA was required, but there was no unreported interest/income on form 1040 -  file amended returns, FATCA and FBAR reports through the Streamlined Foreign Offshore Procedure: http://www.irs.gov/Individuals/International-Taxpayers/U-S-Taxpayers-Residing-Outside-the-United-States.  $1500 for the SP + $360 ($100*3*20% for multiple years) for FATCA (8938) and $300 for Streamlined Certification Letter.

1. Yes - you would also not be subject to the failure-to-file and failure-to-pay penalties and accuracy-related penalties.

1. OVDP, which requires an attorney's assistance, presents a substantial expense for the client. It involve filing 8 years of returns, paying tax and penalties due for all years, paying FBAR civil penalties, and paying lawyer fees for OVDP assistance. 
    
   Meanwhile the Streamlined Procedure is significantly cheaper, requires no attorney involvement and absolves client from fees and penalties. 
2. The only occasion where OVDP  is preferred, is where the IRS has already started a civil investigation. In such case OVDP serves to keep the consequent penalties at bay.

• There is a special program for this - the Delinquent Informational Return Program. Examples of informational returns are 5471 (foreign corporation), 3520-A (foreign trust)
• Participating in this program would entail 3 amended returns for each of the past 3 years (assuming you have not filed the informational return for all three years), and forms 5471 (assuming that is the missing form) for each year.  Finally, a reasonable cause statement must be attached.
• Potential for filing FATCA (form 8938) if the balance on the company accounts (previously unreported) puts the taxpayer over the threshold

If you filed FBAR for all years but did not file tax returns, we can help you file via the Streamlined Procedure.  

This will involve 6 years of FBAR (which you have already filed), 3 years of tax returns, and a certification letter (personal affidavit). 

As long as your FBARs are correct and contained all of your non-US financial accounts (checking, savings, brokerage, pension, etc) - they do not need to be refiled. You will, however, need to include the print out of the confirmation of your FBARs being filed from the treasury (if you need to check if they were filed, please see https://www.taxesforexpats.com/faq.html#60).

1. Yes - you can. There is a specific US Domestic Streamlined Procedure for individuals who fail to meet the residence requirement (having lived at least one year abroad out of last three). You can read more about it here: http://www.irs.gov/Individuals/International-Taxpayers/U-S-Taxpayers-Residing-in-the-United-States

• Short answer - Yes.

  If you qualify for the Streamlined Procedure but have been accepted into one of the offshore voluntary disclosure programs prior to September 1, 2012, you may opt out of the offshore voluntary disclosure program and request the Streamlined Procedure.

  To opt out, you need to inform the examiner of your decision in writing.  This is an irrevocable election and you will receive a notification letter confirming this.  The examiner assigned to your case will then be able to make a risk determination of your submission and close your case according to the Streamlined Procedure.  If all submission items for the voluntary disclosure program have already been submitted to the IRS, you will not be required to make a second submission for the Streamlined Procedures.

We will advise on your eligibility for the SP upon review of your Tax Questionnaire.

If we find that your situation makes you eligible for the SP, we will proceed to file you via the program (most likely scenario). Otherwise if we think that you would not qualify, we will advise on alternate filing routes.

Please bear in mind that the program is really an application for amnesty.  While there is no guarantee that you will be accepted into the program, we have  a lot of experience filing under the procedure and we closely comply with IRS requirements for it. Therefore  our  success rate  is excellent. 

Do NOT contact the IRS in any sort of pre-emptive move.  In the very odd case that they get in contact with you, let them know that you are working on compliance with us.  Our usual turnaround is generally faster than any deadline they'll impose on you, anyway.

The best first contact to make is a completed tax return.

They are eactly the same thing.

Certificate = Letter

From the IRS:

Complete and sign a statement on the Certification by U.S. Person Residing Outside of the U.S.certifying (1) that you are eligible for the Streamlined Foreign Offshore Procedures; (2) that all required FBARs have now been filed (see instruction 8 below); and (3) that the failure to file tax returns, report all income, pay all tax, and submit all required information returns, including FBARs, resulted from non-willful conduct.  You must submit the original signed statement and you must attach copies of the statement to each tax return and information return being submitted through these procedures.  You should not attach copies of the statement to FBARs.  Failure to submit this statement, or submission of an incomplete or otherwise deficient statement, will result in returns being processed in the normal course without the benefit of the favorable terms of these procedures.

• We can give a reliable estimate for preparation of one year - up to 15 working days. Doing multiple years will obviously take longer but the increase in time required is certainly not linear (i.e. you won’t have to multiply number of years by 15 days). After the first return is prepared it will go much quicker - as we will have asked all questions already and simply keep producing returns. 
• Most cases are handled in around a month to two months - your mileage may vary depending on complexity of your case and how quickly you get the information we require to us.

This program requires filing 3 tax returns and 6 FBARs.  When you log on to your portal & create your tax questionnaire, we will ask if you are filing for one or more years. If you indicate you are delinquent on more than one tax return, we'll offer you the ability to join the streamlined program. If you say YES, we will automatically create the tax questionnaire's required for the program. For more information, please see our help article: https://help.taxesforexpats.com/en/articles/6573308-tax-questionnaire-create-manage-and-submit

1. Please make sure to answer YES to the first three questions. Only after they are answered, you will be able to provide details about your foreign accounts.

1. Unfortunately Streamlined Procedure can not be e-filed. We will file the FBARs for you electronically and provide PDF returns of all your returns along with detailed instructions on how to prepare the package and send it to the IRS. 

1. Yes - unfortunately so.
2. Joining the SP requires filing FBAR for the last 6 years (regardless of whether you were required due to the balances on your accounts in specific years).

1. Yes - as long as they file jointly.
2. Our price for the joint SP filing is the same as for an individual SP.
   1. However - if they have separate foreign accounts and need duplicate set of FBARs, this will add extra $50 per FBAR form.

No - you do not have to provide bank statements.  We will only ask you for self-reported details about the accounts

The basic rule is this - if you have a financial account outside of the US, it must be reported.

Here is the full list of accounts that need to be reported:

• Financial (deposit and custodial) accounts held at foreign financial institution

• Foreign Mutual Funds

• Foreign-issued life insurance or annuity contract with a cash-value

• Indirect interests in foreign financial assets through an entity

• Foreign financial account for which you have signature authority

• Foreign stock or securities not held in a financial account

• Foreign partnership interests

• Foreign hedge funds and foreign private equity funds

1. Yes - if you don’t have exact figures, you can provide your best effort estimate.

1. You should report all interest earned in the Supplemental tab of the TQ (sub tab Passive Income / Interest)

1. We accept all major credit cards.
2. Payment is due when your return is prepared. It will be uploaded to the server and locked pending payment. 
3. As soon as you post payment in our system, it will unlock the return for your review automatically.

1. Our standard service fees do not include telephone service.
2. However - that option is available to you. You can schedule a phone consultation with a CPA in your Client Area. It costs $150 for 30 minutes.

1. As part of the Streamlined Procedure you are required to submit an IRS Certification Letter (http://www.irs.gov/file_source/pub/irs-pdf/f14653.pdf)
2. You could either complete it yourself or we could do it for you. 
3. In general we recommend having this done professionally.

1. The price for us to prepare this service is $300.

The Streamlined Program (SP) requires filing of the last 3 years of tax returns and 6 years of FBARs. In other words, currently the years to file are: 2021-2023 for tax returns and 2018-2023 FBARs. 

• Until June 15, 2024, you cannot file 2021, 2022, 2023 - because 2023 is not yet delinquent.

The IRS has also issued guidance on extension filings for those who are behind on their returns.

• File extension for current year (ie - until June 15, 2024, you can file an extension for 2023), and prepare the SP program for current overdue years (2021-2023 Tax Returns, 2018-2023 FBARs)

1. The IRS no longer sends the Streamlined Program acceptance letters (they have done so in the past). So the best news you can have is not hearing anything from them.

   If the IRS needs additional documentation, the request will arrive approximately within 2 months after your filing.

1. FBAR requires reporting the highest value of the account during the year.