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Tag Archive for Streamlined Foreign Offshore Procedure

Expatriates Required To File U.S. Individual Tax Return – Automatic Filing Extension Until June 15, 2018

All Americans are required to file annually the U.S. Individual Tax Return, wherever in the world they live. Here’s what US expats need to know about filing US taxes from abroad.

Expats have an automatic filing extension until June 15th, with a further extension available until October 15th upon request.

All Americans who earn over $10,400 ($4,050 if married filing separately), or just $400 of self-employment income are required to file, regardless of where their income is earned, where in the world they live, whether the U.S. has a tax treaty with that country, or whether they also pay foreign taxes.

The good news is that there are some IRS exemptions just for expats that allow them to reduce or in most cases eliminate their U.S. tax liability completely, although they still must file a US return to claim these exemptions.

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What Offshore Delinquent U.S. Individual Filers Need To Know! – Part 5 (Final)

I am a U.S. citizen and reside in Canada. I have filed U.S. returns annually, however I may have omitted some income or computed income incorrectly and omitted one or more international information returns. Can I rectify the issues with the streamlined program?

Answer

The Streamlined Foreign Offshore Procedure (“SFOP”) is extended to amended returns for the 3 year period. The amended return feature is important as filing omissions such as the failure to include items in income or file various international information returns can come now under SFOP without having to demonstrate a reasonable cause defense. The 2012 program did not have the amended return(s) feature. It is also extended to those who previously filed as a “quiet disclosure” outside of any program. Read more

What Offshore Delinquent U.S. Individual Filers Need To Know! – Part 4

Is acceptance of a streamlined application automatic for those residing in Canada?

Answer

The primary criteria for acceptance into the Streamlined Foreign Offshore Procedure (“SFOP”) is that the reason for the non-compliance was due to non-willful conduct and that you meet a non-residency test.

Non-willful conduct requires you to certify on IRS Form 14653. Non-willful conduct is conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law.

The non-residency requirement is generally met if in any one of the 3 past due years, you Read more