About the Streamlined Procedures
If you previously failed to correctly file your U.S. tax returns or FBARs, you may use the Streamlined Procedures (filing 3 years of tax returns + 6 years of FBARs) to eliminate your prior unreported tax liabilities.
There are two types of U.S. streamlined filing procedures:
1. Streamlined Domestic Offshore Procedures
If, during any of the three tax years being filed, you were physically present in the United States for more than 35 days in all three years, you must use the Streamlined Domestic Offshore Procedures.
- You will be subject to a 5% penalty on the highest aggregate balance of your foreign financial accounts during the six FBAR years.
- If there are any additional taxes owed in the three years of amended tax returns, interest will apply.
2. Streamlined Foreign Offshore Procedures
If, during any of the three tax years being filed, you did not have a U.S. abode and were physically present outside the U.S. for at least 330 days in one or more of those years, you must use the Streamlined Foreign Offshore Procedures.
- Under this procedure, there is no 5% FBAR penalty.
- However, if additional taxes are owed in the three years of amended returns, interest will still apply.
USCPA Sophie Luo (羅霞) reminds If you discover that you have under-reported income or filed anything incorrectly, please consult a professional accountant as soon as possible to avoid unnecessary penalties and interest.
If you have any questions or need any further help,
please contact us at the USCPA Sophie Luo (羅霞) +886 980919600
or Email: ustaxproservice@gmail.com
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