5 Reasons to choose IRS Streamlined Procedure over Delinquency

5 Reasons to choose IRS Streamlined Procedure over Delinquency

5 Reasons to choose IRS Streamlined Procedure over Delinquency

Streamlined Filing Compliance or IRS Delinquency Procedure: When it comes to IRS voluntary compliance, there are two main options for applicants who are non-willful.

There is the Streamlined Filing Compliance Procedures (SFCP), which is broken down further into Streamlined Domestic and Streamlined Foreign, and there are the Delinquency Procedures.

Even though a person may qualify for Delinquency, the Streamlined Procedure may still be the better option — especially when the majority of the assets would otherwise receive a penalty waiver, such as an RRSP or RRIF.

5 Reasons to choose IRS Streamlined Procedure over Delinquency

Here are 5 reasons to choose IRS Streamlined Procedure over Delinquency.

Peace of Mind

It is not uncommon for someone to believe they qualify for delinquency procedures, only to learn later that they did not actually qualify.

For example, while the majority of a person’s unreported accounts may not generate any income, there may be some additional small accounts that were all but forgotten.

Upon further inspection, it turns out the smaller accounts generated some income, which resulted in a change in tax liability.

If the person already submitted under the delinquency procedures, the applicant will not have to go back and redo the whole process —

When this is coupled with the fact that the applicant already may have a set of amended returns on file, it may lead to further complications — and increase the chance of an audit.

IRS Written Confirmation Letter (CP 15)

When a person submits to the Streamlined Domestic program, they will receive a written confirmation from the IRS that their application was received and processed. While it is not equivalent to an OVDP “closing letter,” it does bring clients peace of mind.

*Streamlined Foreign generally does not result in an IRS CP 15 penalty confirmation letter, since the penalty is waived under the Streamlined Foreign Offshore Procedures.

Penalty Waiver

Under the Streamlined Procedure, a person may qualify for a penalty waiver as to certain assets. These assets or accounts will not be subject to the penalty. Therefore, a person can submit to streamlined, receive a penalty waiver on certain items, and still receive a confirmation letter — which is not provided under delinquency procedures.

Amending Tax Returns (Schedule B)

Even if a person has no unreported income, they may still have to either amend or re-file their tax returns to include Schedule B.

Since the department(s) that handles the FBAR does not necessarily coordinate with the agent responsible for processing the tax returns (outside of Streamlined filings) – delinquency may cause additional administrative headaches.

State Tax Liability vs. Federal Tax Liability

In some instances an item that is not taxable at the federal IRS level (RRSP and RRIF) is taxable at the state level.

Therefore, a person may have to amend their state tax return (resulting in a state tax liability).

If that person is later audited at the state-level, it can cause more administrative headaches – since some states actively follow-up with the IRS following (or even during) the state tax audit — resulting in an IRS audit.

Offshore Amnesty – Golding & Golding (Board-Certified)

We specialize exclusively in international tax, and specifically IRS offshore disclosure.

We have successfully represented clients in more than 1,000 streamlined and voluntary offshore disclosure submissions nationwide and in over 70-different countries. We have represented thousands of individuals and businesses with international tax problems.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants and Financial Professionals worldwide.

Less than 1% of Tax Attorneys Nationwide Are Certified Specialists

Sean M. Golding is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.

Recent Golding & Golding Case Highlights

  • We represented a client in an 8-figure disclosure that spanned 7 countries.
  • We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
  • We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
  • We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
  • We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced Streamlined Counsel?

How to Hire Experienced Streamlined Counsel?

How to Hire Experienced FBAR Counsel?

Generally, experienced attorneys in this field will have the following credentials/experience:

  • Board Certified Tax Law Specialist credential
  • Master’s of Tax Law (LL.M.)
  • Dually Licensed as an EA (Enrolled Agent) or CPA
  • 20-years experience as a practicing attorney
  • Extensive litigation, high-stakes audit and trial experience

Interested in Learning More about Golding & Golding?

No matter where in the world you reside, our international tax team can get you IRS offshore compliant. 

Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.