At Universal Tax Professionals we have helped hundreds of delinquent taxpayers get caught up with their taxes through the Streamlined Filing Compliance Procedures. While many other firms charge between $5000 and $10,000 for this service, we take pride in knowing that we average less than $1,500 for the entire package.
The streamlined filing compliance procedures 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. The streamlined procedures are designed to provide to taxpayers in such situations with a streamlined procedure for fling amended or delinquent returns.
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. Taxpayers using either the Streamlined Foreign Offshore Procedures or the Streamlined Domestic Offshore Procedures, will be required to certify, in accordance with the specific instructions, that the failure to report all income, pay all tax and submit all required information returns, including FBARs (FinCEN Form 114, previously Form TD F 90-22,1) was due to non-willful conduct.
If the IRS has initiated a civil examination of taxpayer’s returns for any taxable year, regardless of whether the examination relates to undisclosed foreign financial assets, the taxpayer will not be eligible to use the streamlined procedures. Taxpayers under examination may consult with their agent. Similarly, a taxpayer under criminal investigation by IRS Criminal Investigation is also ineligible to use the streamlined procedures.
Taxpayers who want to participate in the streamlined procedures need a valid Taxpayer Identification Number. All returns submitted under the streamlined procedures must have a valid Taxpayer Identification Number. For U.S. citizens, resident aliens, and certain other individuals, the proper TIN is a valid Social Security Number (SSN). For individuals who are not eligible for an SSN or ITIN will not be processed under the streamlined procedures. However, for taxpayers who are ineligible for an SSN but do not have an ITIN, a submission may be made under the streamlined procedures if accompanied by a complete ITIN application.
The typical streamline process includes three years of delinquent tax returns and six years FBARS for, the three years of which the tax returns are being filed and then the three years prior to those in addition. If for any of the six years an FBAR is not required, then it must state so on the certification form.
A separate form of the taxpayer certification must be accompanied to the tax returns whereby the taxpayer certifies that the non-filing was not due to willful misconduct as explained above and includes a section where the taxpayer addresses the reason that he has not filed taxes or filed FBARS. This form is called F14653 and there is a separate form for shareholders residing either in or outside the US.
The entire streamline documents (other than the FBARS which need to be filed online) are mailed to the IRS at a certain location where all streamline forms and documents are processed accordingly.
See more about the IRS Streamlined Filing Compliance procedures a the IRS website: https://www.irs.gov/individuals/international-taxpayers/streamlined-filing-compliance-procedures.