Streamlined filing compliance procedures stand for an IRS streamlined program available to non-willful taxpayers living internationally. These are also commonly referred to as streamlined domestic offshore procedures. The term “non-willful” represents those who did not purposely fail to disclose income. Instead, their lack of compliance has to be a byproduct of extenuating circumstances, not reckless disregard. The IRS streamlined program is going to offer a full penalty waiver when the taxpayers provide adequate current and amended returns.
The Objective of the IRS Streamlined Program
The main purpose of the IRS streamlined filing compliance procedures or streamlined domestic offshore procedures is to help the IRS improve the tax compliance of expats. Since there are approximately 80,000 IRS workers, there is a serious problem of understaffing. This is why many uncommon issues tied to international tax are extremely difficult to identify. In order to reduce the number of expats who are not in compliance, the IRS started offering a streamlined procedure. Those who opt to utilize the IRS streamlined program will help the government by increasing tax revenue while enjoying the benefit of waived penalties themselves. So, theoretically, the streamlined procedure is a win-win alternative that facilitates proper compliance as per the Foreign Account Tax Compliance Act... [read more]