# New and better streamline program started today?



## boat (May 17, 2014)

Here is a link to a the latest Streamline program changes. I would be great to get some ideas on what this means to the expats.

IRS eases rules for U.S. expats living abroad to come clean on back taxes - The Globe and Mail

Boat


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## boat (May 17, 2014)

And the new IRS link-

Streamlined Filing Compliance Procedures


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## Bevdeforges (Nov 16, 2007)

Thanks for sharing that. I see that the IRS has posted a press release on their website: IRS Makes Changes to Offshore Programs; Revisions Ease Burden and Help More Taxpayers Come into Compliance That is probably the best source for more detailed information.
Cheers,
Bev


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## Nononymous (Jul 12, 2011)

Well that's a step in the right direction, I suppose. Recognition of reality. 

Still doesn't tip my particular balance towards compliance, but that's just me.


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## Skygolden (Jul 21, 2014)

*new streamline process*

Hi guys,

Any input on the new streamline process?

I understand that now, instead of the questionnare, it is required to submit a Certification by U.S. Person Residing Outside of the U.S. However, the link on the IRS's website leads to a "draft" document.

Help please....


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## DownunderInUS (Jul 2, 2014)

In the absence of a 'FINAL' copy, I would think that the DRAFT is the current template. This is part of the new procedure and I'm sure IRS is very busy with many things to go back and made a 'final' format.


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## Skygolden (Jul 21, 2014)

Thanks, but I was wondering if to fill in the information on the actual document when it has the big letters "draft" written all over it.


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## StewartPatton (Aug 5, 2014)

Skygolden said:


> Hi guys,
> 
> Any input on the new streamline process?
> 
> ...


The new streamlined program is definitely a step in the right direction. However, in their usual fashion, the IRS threw a large dose of uncertainty in the process (at least for certain participants).

In general, the program has been greatly expanded. It can now be used (i) by those who were outside the US for 330 days in any of the last 3 years (as opposed to only those who have been outside the US since 2009), (ii) by those who filed tax returns in the previous 3 years (as opposed to only those who hadn't filed since 2009), and (iii) by those who owe any amount of tax (as opposed to only those who owe less than $1,500).

However, the new program can only be used by those whose failure to file returns and FBARs was not "willful." There's a ton of case law on what "willful" means exactly, but it boils down to someone who looks like they were trying to pull a fast one, as opposed to someone who simply didn't know they needed to file. "Willful" taxpayers can participate in a different amnesty program (which generally involves payment of a penalty equal to 27.5% of their offshore assets).

As far as the form, I've just used Adobe Acrobat to take the "DRAFT" off, filled it out, and filed it.


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## 597689 (Jul 18, 2014)

StewartPatton said:


> In general, the program has been greatly expanded. It can now be used (i) by those who were outside the US for 330 days in any of the last 3 years (as opposed to only those who have been outside the US since 2009), (ii) by those who filed tax returns in the previous 3 years (as opposed to only those who hadn't filed since 2009),.



You mentioned 330 days in the 3 years combined or in each year 330 days?
Also, you said: "by those who filed tax returns in the previous 3 years". I thought for those who did not file and those who want to amend a return. 

Please comment!!!!
thanks


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## StewartPatton (Aug 5, 2014)

mya5112 said:


> You mentioned 330 days in the 3 years combined or in each year 330 days?


There are two different streamlined programs, one for non-residents of the US and one for residents of the US. You can use the non-resident program if you were outside the US for 330 days in any year of the last 3 years (so, any of 2011, 2012, or 2013). So, you can use the non-resident program if you were outside the US for 330 days in 2011, or if you were outside the US for 330 days in 2012, or if you were outside the US for 330 days in 2013.

Otherwise, you can use the streamlined program for residents. The difference is that the resident program requires participants to pay a penalty equal to 5% of their offshore accounts--the non-resident program does not have that penalty.



> Also, you said: "by those who filed tax returns in the previous 3 years". I thought for those who did not file and those who want to amend a return.
> 
> Please comment!!!!
> thanks


The old streamlined program could only be used by those who had not filed a tax return after 2009. So, if a person had filed a tax return in any year after 2009, they could not use the old streamlined program. 

That requirement does not exist in the new program. So, the new program can be used by people who have not filed tax returns since 2009 and by people who have filed a tax return in one or more years after 2009. For people who have filed a return in one of the years covered by the program (i.e., currently 2011, 2012, and 2013), the program is for those who did not report all income from offshore assets on the return (e.g., interest or dividend income). These people would file an amended return as part of the program for the year they had already filed a return.


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