The IRS allows U.S. taxpayers to come into compliance through the use of a streamlined filing procedure. Certain restrictions need to be met to qualify for the domestic or foreign streamlined procedure. In general, the purpose is to allow taxpayers to file amended or delinquent returns and resolve their tax and penalty obligations, all with one procedure. The program allows taxpayers to come into compliance by filing the last three years of delinquent or amended returns, and six years of delinquent or amended FBAR reports. To qualify, you must meet the following criteria:
- Taxpayers must certify that their conduct was not willful.
- The IRS has not initiated a civil examination of taxpayer’s returns for any taxable year.
- Taxpayers that are eligible to use streamlined procedures who have previously filed delinquent or amended returns must pay all previous penalty assessments.
- Taxpayers who want to participate in the streamlined procedures need a valid Taxpayer Identification Number.
Tax returns submitted under either the Streamlined Foreign Offshore Procedures or the Streamlined Domestic Offshore Procedures will be processed like any other return submitted to the IRS. Returns submitted under either the Streamlined Foreign Offshore Procedures or the Streamlined Domestic Offshore Procedures will not be subject to IRS audit automatically, but they may be selected for audit under the existing audit selection processes applicable to any U. S. tax return. They may also be subject to verification procedures, in that the accuracy and completeness of submissions may be checked against information received from banks, financial advisors and other sources.