Streamlined Filing Compliance Procedures
Do you have foreign bank accounts, income, or financial assets that you have not reported to the Internal Revenue Service (IRS)? If so, you may need to take action to become compliant with U.S. tax and reporting requirements.
The IRS receives financial information about U.S. taxpayers from foreign financial institutions through the Foreign Account Tax Compliance Act (FATCA). As a result, it is increasingly important to properly report foreign accounts and income.
The Streamlined Filing Compliance Procedures can help eligible U.S. taxpayers correct past reporting errors. A&C can review your situation, determine which filing requirements apply, and help you choose the most appropriate compliance option.
Who Qualifies for the Streamlined Filing Compliance Procedures?
The Streamlined Filing Compliance Procedures are available to certain U.S. citizens and permanent residents whose failure to report foreign income or financial accounts was non-willful.
There are two primary options:
- Streamlined Foreign Offshore Procedures (SFOP): For U.S. taxpayers who meet the requirements for non-residency. Eligible taxpayers may qualify for a 0% penalty.
- Streamlined Domestic Offshore Procedures (SDOP): For U.S. taxpayers who reside in the United States. Eligible taxpayers may qualify for a 5% miscellaneous offshore penalty.
Whether you qualify depends on your individual circumstances. A&C can evaluate your situation and help determine which streamlined filing option may be appropriate.
How A&C Can Help
The Streamlined Filing Compliance Procedures can involve several tax returns and financial disclosures. A&C can help you complete the process accurately and efficiently.
Our services include:
- Preparing original or amended U.S. income tax returns
- Preparing original or amended FBARs
- Obtaining records from foreign banks and brokerage firms
- Communicating with IRS agents when necessary
- Accounting for transactions involving foreign currencies
- Arranging an IRS installment payment agreement if you cannot pay your balance in full
Our goal is to help you resolve your outstanding U.S. tax and foreign account reporting requirements while minimizing potential penalties.
Get Help With Streamlined Filing Compliance
International tax compliance can be complicated, especially when foreign accounts or assets have not been properly reported. A&C has experience assisting clients with successful streamlined domestic and foreign offshore disclosures.
If you have unreported foreign accounts, income, or assets, contact A&C to determine whether you may qualify for the Streamlined Filing Compliance Procedures. We can help you understand your filing requirements and guide you through the compliance process.
Visit A&C for more information about SDOP and SFOP.