Am I Eligible for IRS Streamlined Domestic Offshore Procedures?
For individuals who are out of compliance with IRS requirements for filing and reporting annual foreign account, asset, investment and income, they may consider the Streamlined Domestic Offshore Procedures.
Eligibility for IRS Streamlined Domestic Offshore Procedures
Under these procedures, and in order to get compliant, an applicant submits three (3) years of amended tax returns (including international information reporting forms) and six (6) years of FBARs (aka FinCEN Form 114).
Streamlined Domestic Offshore (SDOP) Eligibility – 3 Main Elements
In order to be eligible for the streamlined domestic offshore procedures there are three (3) main elements. Within these elements there’re various requirements, nuances, exclusions, exceptions and limitations — but these are the three main components.
Filed Timely Tax Returns
In order to qualify for the streamlined domestic offshore procedures (SDOP) a person must have filed original tax returns, and those returns had to be filed timely. In other words, an applicant cannot file original tax returns as part of the streamlined domestic offshore procedures.
In order for a person to qualify for the streamline domestic offshore procedures their noncompliance must be considered “non-willful.” In other words, if person acted willfully, which includes acting with reckless disregard or with willful blindness in failing to report their annual foreign account, asset, investment an income — they are not eligible for SDOP.
Even if a person was only non-willful for a small amount of time, or was willful but only had relatively small amounts of unreported income — they still do not qualify.
Learn what happens if you are willful and try to enter Streamlined Domestic Offshore Procedures.
If a person is a foreign resident, then they will qualify for The Streamlined Foreign Offshore Procedures aka SFOP (presuming they are non-willful). The person qualifies for SFOP, the 5% penalty is waived and the applicant can file original tax returns under the program.
IRS Streamlined Offshore Filing Lawyers (Golding & Golding, Board-Certified Tax Law Specialist)
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
- Learn More about Golding & Golding Testimonials from prior clients
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants and Financial Professionals worldwide.
Common Questions & Answers – Streamlined Domestic Offshore Procedures
- Streamlined Disclosure Common Question & Answer FAQs (lots of them!)
- Summary of FBAR Penalties (with Examples)
- 10 Reasons no to make a “Quiet Disclosure”
Interested in the Streamlined Domestic Offshore Procedures?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in Streamlined Domestic Offshore 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.