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Tag Archive for Streamlined Procedures

Streamlined Program Leaves Snowbirds Out In The Cold

For many U.S. expats who are delinquent in their expat tax filings, the Streamlined Procedures offer a great solution for catching up with limited or no penalties.  Due to the Streamlined program’s qualification requirements, however, American citizens living in Canada, or other countries, who regularly visit the U.S. may find it particularly difficult to participate in the program. Read more

The IRS Tax Amnesty Programs – Fact Or Fiction

Despite the overall success of the IRS tax amnesty programs in recent years, many expats remain hesitant to enter the programs due to a number of misunderstandings surrounding their requirements and their outcomes. In this blog, we separate fact from fiction so that you can decide intelligently whether tax amnesty is right for you. Read more

IRS Crackdown And The Future Of Tax Amnesty Programs

Ephraim Moss

With the recent heavy focus on Congress and the Trump’s administration’s tax reform proposals, it can be easy to forget that the IRS continues to proactively crackdown on offshore tax evasion. Read more

No Refunds For OVDP Participants Without Filed Return

Ephraim Moss

In a recently published Chief Counsel Advice, the IRS chief counsel’s office offered advice to taxpayers participating in its amnesty programs regarding the issue of whether refunds for past overpayments of tax can be used to offset additional taxes or penalties triggered under the program.

Before we get to the advice, let’s first review the amnesty programs that could potentially be affected by the conclusions made in the published advice.

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Enrollment In IRS Disclosure Programs Surpasses 100,000 Mark

Ephraim Moss

The IRS announced that over 100,000 taxpayers have now participated in its disclosure programs, which have been available to delinquent filers since 2009. More specifically, according to the IRS, 55,800 taxpayers have used the Offshore Voluntary Disclosure Program (OVDP) to resolve their tax obligations, paying more than $9.9 billion in taxes, interest and penalties, while an additional 48,000 taxpayers have used the Streamlined Procedures, paying approximately $450 million.

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IRS To Use Foreign Bank Account Info To Scrutinize Forgiven Taxpayers

Ephraim Moss

Since their inception in 2009, the IRS tax amnesty programs have been fairly successful in encouraging delinquent taxpayers to come forward and disclose their offshore activities to the IRS. As the IRS receives more bank account information from foreign institutions however, it may begin to revisit amnesty applications to see whether the bank account info provides evidence that forgiven taxpayers did not in fact qualify for amnesty.

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Problems With The Streamlined Program

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 Read more

IRS Just Made Life Easier: Fillable Forms for Streamlined 2014

The IRS has really streamlined the Streamline Procedures. IRS has just updated the Streamlined Procedure forms for both its “offshore” and “domestic” procedures. All is now in fillable format; even the statement of facts can be cut and pasted right onto the Form.

Certification for Persons OUTSIDE the US

Certification for Persons INSIDE the US

You can learn more about the new Streamlined Procedures at my blog post, here.

Original Post By:  Virginia La Torre Jeker, J.D. Read more