What has to be filed during the Streamlined Foreign Offshore Procedure?
1. Three years of tax returns
For each of the most recent 3 years for which the U.S. tax return due date (or properly applied for extended due date) has passed:
-
if a U.S. tax return has not been filed previously, submit a tax return using Form 1040, U.S. Individual Income Tax Return, together with the required information returns (e.g., Forms 5471 and 8938), or
-
if a U.S. tax return has been filed previously, submit an amended tax return using Form 1040X, Amended U.S. Individual Income Tax Return, together with the required information returns (e.g., Forms 5471 and 8938).
2. Six years of FBARs
For each of the most recent 6 years for which the FBAR due date has passed, file FBARs according to the FBAR instructions and include a statement explaining that the FBARs are being filed as part of the Streamlined Filing Compliance Procedures.
3. Complete and sign a non-willful certification (Form 14653)
Complete and sign a statement on the Certification by certifying (1) that you are eligible for the Streamlined Foreign Offshore Procedures; (2) that all required FBARs have now been filed; and (3) that the failure to file tax returns, report all income, pay all tax, and submit all required information returns, including FBARs, resulted from non-willful conduct. Failure to submit this statement, or submission of an incomplete or otherwise deficient statement, will result in returns being processed in the normal course without the benefit of the favorable terms of these procedures.
Important notes:
-
Tax returns submitted under the Streamlined Foreign Offshore Procedures will be processed like any other return submitted to the IRS. Consequently, receipt of the returns will not be acknowledged by the IRS and the streamlined filing process will not culminate in the signing of a closing agreement with the IRS.
-
After a taxpayer has completed the streamlined filing compliance procedures, he or she will be expected to comply with U.S. law for all future years and file returns according to regular filing procedures.
-
The statute of limitations starts (or restarts) once the submission is made.
-
Usually, the processing time by the IRS is up to six months, but due to the Covid-19, there may be delays.
