What is the Streamlined Filing Compliance Procedure in the US?

The Streamlined Filing Compliance Procedure is a penalty free way to catch up with your filing responsibilities introduced by the IRS. It provides an additional method of filing for the many US expats living abroad who don’t realise they must file a US Tax return annually.

KEY FACTS:

• The IRS Streamlined Filing Compliance Procedures is an amnesty program designed to allow people who were unaware of their filing requirements to come forward penalty free and get up to date on their expat taxes. (as such this program can be stopped at any time) 

• This program requires you to file your most recent 3 years of late tax returns and 6 years of FBAR, alongside Form 14653.

• Form 14653 is a form that you need to submit to qualify for the streamlined filing program that certifies that your lack of compliance was not willful or intentional.

The Streamlined Filing Compliance Procedures are created to help low-risk individuals become tax compliant. The process is designed to be a less burdensome way to get caught up than the Offshore Voluntary Disclosure Practice. Streamlined filing requires only a certain number of tax returns to be filed, which can cut down on the time, effort, and expense needed to catch up.

Can expats use the streamlining compliance procedure?

The program is designed specifically for Americans outside the US to help them catch up on their missed taxes and requires that the individual be physically present outside the United States for 330 days in one or more of the past 3 years.

Who qualifies for the streamlining procedure?

Currently, to qualify for the Streamlined Offshore Filing program, you must:

• Show that the reason for not filing in the past was “Non-Willful,” If you failed to comply with your US tax obligations, you must state under penalty of perjury that it was not intentional and that your noncompliance resulted from a mistake or a lack of understanding of your obligations. 
• Not have had an abode in the US for one or more of the three most recent tax years. 
• Have been physically present outside the United States for at least 330 full days during one or more of the three most recent tax years 
• Have a Social Security Number or Taxpayer Identification Number (ITIN). However, if you do not qualify for a Social Security Number and do not have an ITIN, you may apply for an ITIN with your tax documents when filing under the Streamlined program.

To prove your eligibility for the Streamlined Program, you must include a signed statement (Form 14653) certifying this fact as part of the package you submit to the IRS.

We have been helping US expats for over 10 years with their US filing responsibilities so if you think your situation could be covered by using the Streamlined Filing Compliance Procedures, please call us on +44 (0)7836 355007 or use the contact form.