Circ*mstances When Program Is Recommended
Eligibility
Submissions to the IRS
Results / Penalties
Streamlined
(Foreign)
U.S. non-resident whose delinquency is due to non-willful conduct
- Non-resident for U.S. tax purposes
- Delinquency due to non-willful conduct
- 3 years of tax returns and information returns
- 6 years of FBARs
- Non-willful certification
- No penalties
- Payment of tax due with interest
- No final agreement
Streamlined (Domestic)
U.S. resident whose delinquency is due to non-willful conduct
- U.S. tax resident
- Non-willful conduct
- Taxpayer has not failed to file required U.S. income tax return in any of the three most recent tax years.
- 3 years of tax returns and information returns
- 6 years of FBARs
- Non-willful certification
- 5% offshore penalty
- Payment of tax due with interest
- No final agreement
Relief for Certain Former Citizens
Individual whose delinquency is due to non-willful conduct and who has renounced or plans to renounce US citizenship
- Non-willful conduct
- Not subject to U.S. exit tax
- Total tax liability of $25,000 or less for past five tax years
Tax returns for the year of renunciation and the previous 5 years
- No penalties
- No exit tax
- No tax or interest liability
- IRS notice will be sent if submission is accepted
Voluntary Disclosure Program
Taxpayer who is delinquent on domestic or offshore items with potential exposure to criminal liability and/or substantial civil penalties due to willful conduct
No specific requirements
- 6 years of tax returns and information returns
- 6 years of FBARs
- 75% civil fraud penalty applies to tax year with highest tax liability
- Willful FBAR Penalties apply
- Penalties may be reduced
Delinquent FBAR Submission Procedures
Taxpayer who is delinquent only with respect to FBAR filings
- Income from accounts reported on original return
- Not under IRS examination or investigation
- No previous contact by IRS
- Submission of late FBAR(s)
- Brief explanation for late filing
- No penalties
- No final agreement
