The information on the program changes are:
- Streamline Filing Compliance Process (as changed 6/18/14), read here. This is the description. There are two types of Streamline filings: Non-resident and Resident. The Nonresident program -- referred to as Streamlined Foreign Offshore Procedures -- is described on a web page titled: U.S. Taxpayers Residing Outside the United States, read here. The Resident program -- referred to as Streamlined Domestic Offshore Procedures -- is described on a web page titled U.S. Taxpayers Residing in the United States, read here.
- Delinquent International Information Return Submission Procedures (as changed 6/18/14), read here. (This relates to the Forms required for entities, such as CFC's, trusts,etc.)
- IRS OVDP 2014 FAQs, read here. Pay attention particularly par. 1.1 on the changes from the original OVDP 2012.
The
new procedures are as follows:
1.
Foreign residents (requiring only foreign residence in the 3 year
period): File 3 years of delinquent or amended returns
and pay tax and interest. No penalties (including FBAR or
miscellaneous) will be assessed. Must also complete and sign a
statement on the Certification by U.S. Person Residing Outside of the
U.S. certifying (i) eligibility for the procedure, (ii) filing of all
required FBARs, and (iii) that the failure to file tax returns,
report all income, pay all tax, and submit all required information
returns, including FBARs, resulted from non-willful conduct.
2.
Nonforeign residents (Domestic residents): Must
file 3 years of returns and pay tax and interest. No penalties
other than a 5% miscellaneous penalty on foreign financial accounts
only will be assessed. Must complete and Sign the Certification
by U.S. Person Residing in the U.S. that (i) eligibility is met; (ii)
all FBARs have been filed; (iii) "the failure to report all
income, pay all tax, and submit all required information returns,
including FBARs, resulted from non-willful conduct;" and (iv)
that the miscellaneous penalty amount is accurate.
Nonwillful
conduct for the purposes of #1 and #2 is: "conduct
that is due to negligence, inadvertence, or mistake or conduct that
is the result of a good faith misunderstanding of the requirements of
the law;
The
taxpayers can be audited under the income tax audit guidelines but
will not be automatically audited.
A
couple of the material changes to OVDP 2012 are
described in par. 1.1 of the FAQs as follows:
• A 50% offshore penalty applies if either a foreign financial institution at which the taxpayer has or had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement has been publicly identified as being under investigation or as cooperating with a government investigation. See FAQ 7.2.
• FAQ 7 has been modified to require that the offshore penalty be paid in full at the time of the OVDP submission.
