- 1 IRS Streamlined Filings are always Complicated
- 2 Streamlined Filing Compliance Lawyers – Golding & Golding, Board-Certified Tax Law Specialist Team
- 3 5 Quick Facts about the Streamlined Filing Compliance Procedures
- 4 You do not have to be a Citizen or Legal Permanent Resident
- 5 You can Include Domestic Income as well.
- 6 There are Usually Complicated Tax Issues Lurking
- 7 SDOP 5% Penalty cannot be Waived or Negotiated
- 8 But Some SDOP Assets are Not Penalized
- 9 Interested in the Streamlined Filing Compliance Procedures?
5 Quick Facts about IRS Streamlined Filing Compliance Procedures
IRS Streamlined Filings are always Complicated
The program may appear “relatively” uncomplicated at first, but a Streamlined submission is generally very detailed and comprehensive — with most of the complex tax issues hiding in plain sight.
Streamlined Filing Compliance Lawyers – Golding & Golding, Board-Certified Tax Law Specialist Team
Golding & Golding represents clients worldwide in over 70-countries exclusively in Streamlined, Offshore and IRS Voluntary Disclosure matters. We have successfully completed more than 1,000 streamlined and voluntary disclosure submissions.
- Learn more about the Board-Certified Tax Lawyer Specialist credential
- Learn more about the IRS Enrolled Agent credential
- Learn More about Golding & Golding’s Case Accomplishments
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5 Quick Facts about the Streamlined Filing Compliance Procedures
Here are 5 very important facts about the Streamlined Procedures:
You do not have to be a Citizen or Legal Permanent Resident
If you are a non-U.S. person, you may have been required to file tax returns in the U.S. due to qualifying under U.S. tax rules as a U.S. Person by way of the Substantial Presence Test. Let’s say you currently do not meet the Substantial Presence Test, but you met the test in any of the last 3-years, you can still file — and under Streamlined Foreign Offshore Procedures (SFOP), you may qualify for a penalty waiver.
You can Include Domestic Income as well.
Let’s say you are amending the returns, or preparing original returns (SFOP Only) and you realize you missed a 1099 or other form of U.S. income. You can include this income on the returns submitted under the Streamlined Program, in addition to the foreign income.
There are Usually Complicated Tax Issues Lurking
This is not meant to scare you…it just is what it is. There are firms such as Golding & Golding that specialize exclusively in this area of law. Oftentimes, a client will come to us after they went to less experienced counsel who missed several key issues, including:
SDOP 5% Penalty cannot be Waived or Negotiated
If you submit under the Streamlined Domestic Offshore Procedures, the 5% penalty cannot be waived or negotiated. The penalty is firm, and if your intent is to try to side-step the penalty, you should consider making a Reasonable Cause submission in lieu of Streamlined.
But Some SDOP Assets are Not Penalized
For example, under most circumstances, the RRIF and RRSP are not penalized. Also, foreign real estate (including rental property) owned by an individual (vs. corporate or partnership asset) will usually escape penalty as well.
In addition, if you believe you have a similar asset — such as foreign pensions — that should escape penalty, you may try to get that reduced, but submitting outside of the IRS approved guidelines may cause more headache than necessary.
Interested in the Streamlined Filing Compliance Procedures?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in Streamlined Filing Compliance Procedures. Contact our firm today for assistance with getting compliant.
Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Golding's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.