IRS STREAMLINE OFFSHORE PROCEDURES FOR FBAR & FACTA REPORTING

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FBAR & FACTA Streamlined Procedures

The Streamlined Procedures offer amnesty to taxpayers who need to meet international reporting requirements under FBAR (Foreign Bank Account Reporting) and FATCA (Foreign Account Tax Compliance).

This program can protect you from severe penalties, starting at $10,000 per violation, per year for not filing forms like FinCEN Form 114 (FBAR) and IRS Forms 3520, 5471, and 8938 (FATCA). It provides a path forward to get back in good standing with the IRS, but it is a temporary program with no official end date.

What does “non-willful” mean for eligibility?

It means your failure to file was a mistake, an oversight, or due to a misunderstanding of your obligations; not an intentional effort to evade taxes. A certification statement should explain the facts and circumstances, such as your background and the steps you took to become compliant.

Foreign: Offshore Compliance Procedures (SFOP)

Foreign Offshore Procedures are for U.S. taxpayers residing abroad. To be eligible, you must have been physically outside the U.S. for at least 330 days in one or more of the last three tax years.

FOREIGN OFFSHORE PROCEDURES
FDOP

What form do I need to submit?

You must complete and sign Form 14653, Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures. This form acts as the cover sheet for your submission and contains your non-willfulness certification.

Domestic: Offshore Compliance Procedures (SDOP)

The Domestic Offshore Procedures is for U.S. taxpayers living in the United States that do not meet SFOP residency requirements. While the filing requirements are similar to the foreign procedure, this option is more punitive, requiring a 5% penalty on the highest aggregate balance of the unreported foreign financial accounts.

DOMESTIC OFFSHORE PROCEDURES
SDOP

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INTERNATIONAL TAX FORMS AND REPORTING

FBAR FINCEN FORM 114

This form is required if you have ownership or signature authority over foreign financial accounts, including bank, brokerage, or mutual funds, where the total value exceeded $10,000 at any point during the calendar year. This applies even to joint accounts with a spouse.

IRS FORM 3520 – FOREIGN TRUSTS & GIFTS

You must file this form if you create a foreign trust or receive gifts or an inheritance from a non-U.S. person exceeding $100,000. This is a crucial step for reporting large transactions with foreign entities and individuals.

FORM 5471 – FOREIGN CORPORATIONS

This reporting form is for U.S. persons who have an ownership stake in certain foreign corporations. An example includes being part of a group of U.S. persons who collectively own more than 50% of a privately held foreign company.

FORM 8938 – REPORTING FOREIGN ASSETS

This form reports specified foreign financial assets and has different reporting thresholds based on your filing status and residency. For a single individual in the U.S., the requirement begins if assets exceed $50,000 on the last day of the year or $75,000 at any time during the year.

Do I have to amend my tax returns?

Yes — the program requires you to file or amend your last three years of U.S. income tax returns (Form 1040 series). These returns must include all previously omitted international reporting forms, such as Form 5471, Form 8938, and Form 3520, and report all related income.

Are Foreign Bank Account Reports (FBARs) also required?

Yes — along with your tax returns, you must file or amend your FinCEN Form 114 (FBAR) for the last six years. This is a separate filing from your tax return and is submitted directly to the Financial Crimes Enforcement Network (FinCEN), not the IRS.

PREPARE FOR STREAMLINED PROCEDURES

Sign our Service Agreement

Review and sign our Service Agreement online. Separate agreements are required for spouses filing jointly.

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Last Three Filed Tax Returns

Upload the last three filed tax returns (federal and state) all pages along with all tax documents for each year.

Foreign Bank & Financial Accounts Statements

Upload at least six years of foreign bank and financial account statements. Creating a clear digital folder with a consistent naming convention will make the process smoother for you and your tax professional.

Am I still responsible for the accuracy of my returns if I hire a professional?

Yes — you are ultimately and legally responsible for the accuracy of everything on your tax returns. When your tax professional asks you to review the documents before signing, it is critical to do so carefully, ask questions for clarification, and ensure all information is correct. The IRS holds you, the taxpayer, accountable for the return you sign.

APPOINTMENT OPTIONS

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Have questions before booking? Send us a message or call (949) 625-4271 – Jeffrey B


Disclaimer: The information on this page is provided for general informational purposes only and is not tax advice or legal advice. It is not a substitute for advice based on your specific facts and circumstances. Tax and legal rules change, and their application depends on the details of your situation. Using this website, booking an appointment, or contacting Yorktown Main LLC does not create an attorney-client relationship. Do not send confidential information through this website or by email. For guidance specific to your situation, consult a qualified attorney and a qualified tax professional.

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