Streamlined Tax Amnesty

Streamlined Compliance Procedure

There are so many myths to dispel –

  • If you are US exposed (citizen, green card or substantial presence), you are usually taxed on your worldwide income;
  • These tax obligations do not stop because you reside outside of the US;
  • Even if your earnings are under the threshold of the foreign earned income exclusion, and you reside outside of the US, you may still have to file US tax returns;
  • Since the early 1970s, US persons have been obligated to report any foreign financial assets once the maximum aggregate balance exceeds a certain threshold.

FATCA and CRS have, among other things made these requirements more widely known.  If any of the above is news to you?  Then you may have to do some catchup filings.  Pleading ignorance is no longer a credible excuse.

Most professionals agree on three things –

  1. It is critical to contact the IRS before they contact you.
  2. The idea of a “quiet disclosure” involves quietly filing prior year returns outside of any amnesty program. This is not advisable.
  3. Technology means that it is both possible and probable that any “quiet disclosure” will not go unnoticed.

Nanette Davis, a Department of Justice (DOJ), Tax senior litigation counsel, is on record cautioning taxpayers about quiet disclosures, with the threat that additional enforcement action may follow because

(i) the DOJ program is helping identify quiet disclosures and
(ii) “the patterns of late returns and FBARs are clear in the data.”

The ‘data’ referenced in that quote is apparently the data in the IRS records when entering the filing of delinquent or amended income tax returns and delinquent FBARs 

Whether or not the streamlined procedures are right for your case depends on a number of factors.  One of these factors is willfulness.  Read more here – http://www.mooresrowland.tax/2015/11/willfulness.html

First, we would like to thank you for taking the time to get to know us. We are Hayden T Joseph & Co (http://www.htj.tax) and we are an independent member firm of the Moores Rowland Asia Pacific Network (http://mooresrowland-asiapac.com). The group has over 30 offices in 11 countries.

We work on International Tax in general, and United States International Tax in particular.

  • We can help your family or your firm with international tax planning as well as international tax compliance. Especially within –
    • The UK
    • The USA
    • Parts of the Caribbean and
    • Asia.

Here’s more on the streamlined procedures – http://www.mooresrowland.tax/2015/02/streamlined-foreign-offshore-procedures.html

  1. We would need to prepare 3 years Federal returns. The most recent 3 years for which the due date has already passed.
  2. We would need to prepare 6 years of FBARs http://www.mooresrowland.tax/2014/11/fbars-and-form-8938.html
  3. If you have more than 10% in any non-US entities, we would need to prepare an information return such as Form 5471 declaring your interest –http://www.mooresrowland.tax/2014/03/the-scariest-us-tax-form-ever.html
  4. A cover letter is also required.  95% of our clients write it themselves but if you require an attorney to assist, we can recommend accordingly.

Let me know if you have more questions  – email HTJ@help.tax