There are some shortcomings of the Streamlined Program:
“Despite the seemingly taxpayer-friendly incentives, the streamlined program has several shortcomings. The devil is in the details! First, participants are not guaranteed immunity from criminal prosecution. Second, with respect to the Streamlined Domestic Offshore Procedures, the five-percent penalty is imposed on a broader base of foreign assets – not just those relating to FBAR reporting.
Finally, to the extent that the IRS undertakes an examination of the taxpayer’s returns and finds that the taxpayer was willful, the taxpayer could be subject to any one of the following parade of horribles. First, and most obvious, the taxpayer will be barred from participating in the streamlined program. Second, not only could the IRS refer the matter to the Department of Justice for criminal prosecution on the FBAR front, but it could also recommend prosecution for perjury, on the grounds that the taxpayer submitted a false certification.”
The question that the IRS is sure to as is, “Why did you not file your returns and/or FBAR’s in a timely manner?” Now what are your going to answer? If you are an US citizen, in reasonably good health, have all (or at least most all of) your mental faculties how are you going to PROVE to the IRS that your omission was not “willful”.
I am advising clients to stay away from the streamlined program and just do a quite compliance filing of back returns and FBAR’s. I think it is a much safer way to go.
Dan has been preparing tax return for US Taxpayers and Expatriates since 1998 beginning with US military and Embassy mission personnel in Bangkok, Thailand. He has always loved math and took business accounting at City U. in Seattle Washington. Dan worked at Clint Gordon & Associates (Accredited Tax Consultant) were he gained his foundational knowledge of the US taxing system.
Dan has been studying tax preparation and tax law ever since increasing his skill and knowledge of the tax preparation business accordingly, Dan is known in many circles around the globe as an Expatriate Tax Expert. His book entitled “The Complete US Expat Tax Book” has recently been published and is available on Kindle, Amazon and booksellers around the world.
Thru the years, Dan has fought many battles with the Internal Revenue Service as well as various state taxing departments with great success in helping lower and or eliminate his clients tax debts.
Dan Gordon and his staff enjoy the work they do from the simplest 1040EZ to the most complex corporations, with the goal that no client should pay more tax than legally required.
3 comments on “Problems With The Streamlined Program”
wow….
I am advising clients to stay away from the streamlined program and just do a quite compliance filing of back returns and FBAR’s. I think it is a much safer way to go. Would you explain more about do a quite compliance of back returns and FBAR’s, can you give me an example? Thanks a lot!
George, Quite means file the return and the FBAR’s without any notice or communications with the IRS. You can e file 2012 and 2013 but you have to mail in older years. For FBAR when you go online and get the form you simply enter the year you are filing for on the top of the Filer info page, fill out and file the form. That is the quiet procedure. I hope this clarifies it for you. Any further questions do not hesitate to ask.
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