Arrears

Arrears

Arrears

In the past, where a US citizen had arrears of tax returns the IRS had various programs whereby one could file their returns, pay the tax owing, together with Failure to File and Pay Penalties etc., and could be subject to other punitive measures by the IRS.
Such programs usually involved filing at least six years of delinquent returns, together with six years of Foreign Bank Account Reports.

However in 2012 the IRS introduced the Streamlined Foreign Offshore Procedure, and further amended it in 2014.

Where a US taxpayer has arrears of tax returns, then they may be eligible for this procedure provided that the reason for the non-filing of returns was not due to Wilful Conduct.

Arrears
Arrears

In the past, where a US citizen had arrears of tax returns the IRS had various programs whereby one could file their returns, pay the tax owing, together with Failure to File and Pay Penalties etc., and could be subject to other punitive measures by the IRS.
Such programs usually involved filing at least six years of delinquent returns, together with six years of Foreign Bank Account Reports.

However in 2012 the IRS introduced the Streamlined Foreign Offshore Procedure, and further amended it in 2014.

Where a US taxpayer has arrears of tax returns, then they may be eligible for this procedure provided that the reason for the non-filing of returns was not due to Wilful Conduct.

If the person is eligible, then the returns that need to be filed are:

  • 3 years of tax returns that are in arrears, together with supporting schedules,
  • 6 years of Foreign Bank Account Reports (FinCEN 114’s), and
  • A declaration confirming the circumstances of the delinquent returns, and that they are non-resident in the US for at least 330 days in each of the last 3 years.

Any tax due together with statutory interest will be payable with the submission, and if accepted by the IRS, will not be subject to various penalties such as Failure To File, Failure to Pay etc.

We have had experience of filing many of these submissions in recent years, so we can assist you in bringing your US tax affairs up to date in a timely fashion.

SHOULD YOU NEED TO DISCUSS YOUR SITUATION, PLEASE CONTACT US.

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