Have you failed to report U.S. taxes and information reports for years? Resolve it clearly with the IRS Streamlined Filing Compliance Procedures (SFCP).
Have you failed to report U.S. taxes and information reports for years? Resolve it clearly with the IRS Streamlined Filing Compliance Procedures (SFCP).
Streamlined Filing Compliance Procedures (SFCP)
The Streamlined Filing Compliance Procedures (SFCP) is a program designed to assist U.S. individual taxpayers in good faith who have failed to comply with U.S. tax laws in restoring compliance with the Internal Revenue Service (IRS). Through this IRS official program, taxpayers can submit unreported U.S. tax returns, information reports, and Foreign Bank and Financial Accounts Reports (FBARs). SFCP is divided into two categories based on the taxpayer's residency status.
• Streamlined Foreign Offshore Procedures (SFOP) for non-resident taxpayers
• Streamlined Domestic Offshore Procedures (SDOP) for U.S. resident taxpayers
This program is designed for cases of unintentional U.S. tax non-compliance made in good faith, aiming to simplify the complex U.S. tax filing process and provide full or partial penalty relief to reduce the burden on U.S. individual taxpayers acting in good faith. Through SFCP, U.S. individual taxpayers can legally restore their compliance with U.S. tax laws.
Streamlined Foreign Offshore Procedures (SFOP) for non-resident taxpayers
The Streamlined Foreign Offshore Procedures (SFOP) is the IRS official program designed to assist U.S. non-resident taxpayers in good faith who have failed to comply with U.S. tax laws in voluntarily filing their unreported U.S. taxes and information reports, while granting them amnesty and qualifying for penalty relief.
• Eligibility
Non-resident U.S. individuals and foreign individuals, who unintentionally failed to file U.S. tax returns, information reports, and Foreign Bank Account Reports (FBARs) for years.
• Required Documents
SFOP application form + U.S. tax returns for the past 3 years + Information reports for the past 3 years + FBARs for the past 6 years, etc.
• Benefits
The program offers full penalty relief, and full amnesty is granted for all unreported U.S. tax returns, information reports, and Foreign Bank Account Reports (FBARs) for years.
※ Returns submitted under the SFOP will not be subject to IRS audit automatically, but they may be selected for audit under the existing audit selection processes applicable to any U. S. tax return.
Streamlined Domestic Offshore Procedures (SDOP) for U.S. resident taxpayers
The Streamlined Domestic Offshore Procedures (SDOP) is the IRS official program designed to assist U.S. residents in good faith who have failed to comply with U.S. tax laws in voluntarily filing their unreported U.S. taxes and information reports, while granting them amnesty and qualifying for reduced penalties.
• Eligibility
U.S. residents, including U.S. individuals and foreign individuals, who unintentionally failed to file U.S. tax returns, information reports, and Foreign Bank Account Reports (FBARs) for years.
• Required Documents
SDOP application form + U.S. tax returns for the past 3 years + Information reports for the past 3 years + FBARs for the past 6 years, etc.
• Benefits
The program offers a penalty of 5% of the highest year-end balance of unreported foreign financial accounts for the past 6 years (foreign financial assets for the past 3 years), and full amnesty is granted for all unreported U.S. tax returns, information reports, and Foreign Bank Account Reports (FBARs) for years.
※ Returns submitted under the SDOP will not be subject to IRS audit automatically, but they may be selected for audit under the existing audit selection processes applicable to any U. S. tax return.
To determine eligibility for the SFCP, please provide a detailed description of the applicant's circumstances.
FAQ (Frequently Asked Questions)
Answer: The statute of limitations for U.S. tax filing is generally 3 years, but it can be extended to 6 years in cases of significant understatements of income. However, if taxes are not filed, the statute of limitations does not apply, and the non-filing status will persist. As a result, penalties and interest for unpaid taxes will continue to accumulate. In particular, if Foreign Bank Account Reports (FBARs) are unreported, penalties of up to 50% of the account balance may be imposed, making it crucial to address the issue promptly. If tax issues are left unresolved, there is also the risk of criminal penalties by the IRS. Therefore, it is highly recommended that a U.S. tax professional, such as a Certified Public Accountant (CPA) be consulted to resolve the matter swiftly.
Answer: Yes, it is possible. The foreign individual without an SSN can still restore compliance with U.S. tax laws through the Streamlined Filing Compliance Procedures (SFCP). In the past, SFCP was primarily available to U.S. individuals, but after tax law revisions, foreign individuals are now eligible to use this procedure. Foreign individuals without an SSN can apply for an ITIN (Individual Taxpayer Identification Number) while proceeding with SFCP. This will allow them to obtain an individual taxpayer identification number (ITIN) along with filing their U.S. tax returns. Additionally, if a foreign individual is considering immigration or relocation to the U.S., failure to file taxes properly may result in visa issues, so it is important to resolve this matter promptly.
Answer: If the failure to file U.S. taxes was not intentional, it is likely possible to regain compliance with U.S. tax laws through the Streamlined Filing Compliance Procedures (SFCP). However, you cannot use SFCP if you are currently under an IRS audit or investigation. Therefore, it is crucial to avoid contact with the IRS and promptly begin the SFCP process. To benefit from SFCP, you must initiate the process before becoming the subject of an IRS audit or examination. For your information, if, in any one or more of the most recent three years for which the U.S. tax return due date (or properly applied for extended due date) has passed, the individual did not have a U.S. abode and the individual was physically outside the United States for at least 330 full days, you may qualify as a non-resident in the U.S. under the SFCP.
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