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IRS Amnesty Programs for Late Filers

$1800 (Streamlined Package)

If you are late and looking to catch up with the IRS, we can help! We are the experts in navigating the IRS amnesty programs, including the popular Streamlined Procedures, which can get you caught up with no penalties. No matter the circumstances, we’ll help you find the best solution.

The IRS Streamlined Procedures

The most popular and advantageous of the IRS amnesty programs is the IRS Streamlined Procedures. Under this program, a late filer can come clean with the IRS with potentially no penalties by filing tax returns, with all required information returns, for the prior 3 years, and any delinquent FBARs for the prior 6 years. In order to qualify for the Streamlined Procedures, you must demonstrate in a written statement that your previous non-compliance was not willful. Our experts have guided numerous clients through this process and will ensure that you have the best opportunity to qualify for the Streamlined amnesty program.

Our flat fee of $1800 includes the preparation of 3 previous tax returns, 6 previous FBAR forms, and guidance and review of your non-willful statement. Please note that this fee applies to our basic Streamlined Package. Should you require special information reporting, such as Form 8938 (FATCA), Form 5471 (ownership in foreign corporations), Form 3520 (foreign trusts) and the like, additional fees may apply.

For more information on the IRS Streamlined Procedures, including detailed FAQs, please visit our page dedicated to this topic: IRS Streamlined Procedures

Other IRS Amnesty Programs

While the Streamlined Procedures amensty program is the more popular solution for late filers, the IRS offers other options depending on the circumstances.

These options include: Our experts at Expat Tax Professionals would be happy to discuss your particular circumstances and help you understand your best options.

Form-Specific IRS Amnesty Programs

Delinquent FBAR Submission Procedures (“DFSP”)

For U.S. expats who are delinquent only with respect to FBAR reporting, the DFSP offers an easy process for submitting late FBARs without being subject to penalties.

In order to be eligible for the program, you need to meet the following criteria:

  • you are not required to submit missing or amended tax returns (because all income was properly reported on your original returns);
  • you are not under a civil examination or a criminal investigation by the IRS; and
  • you have not been contacted by the IRS regarding the delinquent FBARs.
Under this IRS amnesty program, late FBARs must be submitted, going back up to six years, with a brief statement explaining why the FBARs were filed late. If you meet these criteria, the IRS will not impose a penalty for failure to file the delinquent FBARs.

Delinquent International Information Return Submission Procedures (“DIIRSP”)

These DIIRSP offer an easy process for those who do not need to use one of the main IRS amnesty programs to file delinquent or amended tax returns to report and pay additional tax, but who:
  • have not filed one or more required international information returns (e.g., Form 5471 or Form 3520);
  • have “reasonable cause” for not timely filing the information returns;
  • are not under a civil examination or a criminal investigation by the IRS; and
  • have not already been contacted by the IRS about the delinquent information returns.
Under this IRS amnesty program, you must file the delinquent information returns with a statement of all facts establishing reasonable cause for the failure to file. If you meet these criteria, the IRS will not impose a penalty for failure to file the delinquent information returns.

Table Summarizing IRS Amnesty Programs

 

 

Circumstances When Program Is Recommended

Eligibility

Submissions to the IRS

Results / Penalties

Streamlined (Foreign)

U.S. non-resident whose delinquency is due to non-willful conduct

- Non-resident for U.S. tax purposes
- Delinquency due to non-willful conduct
- 3 years of tax returns and information returns
- 6 years of FBARs
- Non-willful certification
- No penalties
- Payment of tax due with interest
- No final agreement

Streamlined (Domestic)

U.S. resident whose delinquency is due to non-willful conduct

- U.S. tax resident
- Non-willful conduct
- Taxpayer has not failed to file required U.S. income tax return in any of the three most recent tax years.
- 3 years of tax returns and information returns
- 6 years of FBARs
- Non-willful certification
- 5% offshore penalty
- Payment of tax due with interest
- No final agreement

Relief for Certain Former Citizens

Individual whose delinquency is due to non-willful conduct and who has renounced or plans to renounce US citizenship

- Non-willful conduct
- Not subject to U.S. exit tax
- Total tax liability of $25,000 or less for past five tax years
Tax returns for the year of renunciation and the previous 5 years
- No penalties
- No exit tax
- No tax or interest liability
- IRS notice will be sent if submission is accepted

Voluntary Disclosure Program

Taxpayer who is delinquent on domestic or offshore items with potential exposure to criminal liability and/or substantial civil penalties due to willful conduct

No specific requirements

- 6 years of tax returns and information returns
- 6 years of FBARs

 

- 75% civil fraud penalty applies to tax year with highest tax liability
- Willful FBAR Penalties apply
- Penalties may be reduced

Delinquent FBAR Submission Procedures

Taxpayer who is delinquent only with respect to FBAR filings

- Income from accounts reported on original return
- Not under IRS examination or investigation
- No previous contact by IRS
- Submission of late FBAR(s)
- Brief explanation for late filing
- No penalties
- No final agreement

Delinquent International Information Return Submission Procedures

Taxpayer who is delinquent only with respect to international information returns (e.g., Form 5471, 3520, 8938)

- Reasonable cause for not filing
- Not under IRS examination or investigation
- No previous contact by IRS
- Submission of late international information return(s) with amended return
- Detailed reasonable cause statement
- No penalties
- No final agreement




 

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