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Streamlined Foreign Offshore Procedures

For

U.S. Taxpayers Residing Outside the United States

Disclaimer: The following is intended for general information only and not legal or tax advice.

The following are referred to as the Streamlined Foreign Offshore Procedures.

Eligibility for the Streamlined Foreign Offshore Procedures

In addition to meeting the general eligibility criteria, individual U.S. taxpayers or their estates, contemplating the Streamlined Foreign Offshore Procedures, must:  

(1) Meet the applicable non-residency requirement described below (for joint return filers, both spouses must meet the applicable non-residency requirement described below) and

(2) Have failed to report the income from a foreign financial asset and pay tax as required by U.S. tax law, and may have failed to file an  FBAR with regarding to a foreign financial account, and such failures was non-willful.  Non-willfulness was due to negligence, inadvertence, or mistake or a good faith misunderstanding of the law.

Non-residency requirement for U.S. citizens or green card holders:  Individual U.S. citizens or green card holders or their estates, meet the applicable non-residency requirement if, in any one or more of the most recent three years for which the return due date (or properly applied for extended due date) has passed, the individual did not have a U.S. abode and the individual was physically outside the United States for at least 330 full days.  Under IRC section 911 and its regulations, which apply for purposes of these procedures, neither temporary presence of the individual in the United States nor maintenance of a dwelling in the United States by an individual necessarily mean that the individual’s abode is in the United States.  For more information on the meaning of “abode,” see IRS Publication 54, which may be found at Publication 54.

Non-residency requirement for individuals who are not U.S. citizens or green card holders:  Individuals who are not U.S. citizens or green card holders or their estates, meet the applicable non-residency requirement if, in any one or more of the last three years for which the U.S. tax return due date has passed, the individual did not meet the substantial presence test of IRC section 7701(b) (3).  For more information on the substantial presence test, see IRS Publication 519, which may be found at IRS Publication 519.

Zaher Fallahi, Tax Attorney, CPA, represents taxpayers nationwide with their offshore voluntary disclosure practice (OVDP), streamlined procedures, delinquent FBAR filing, delinquent international information return filing and foreign gifts. Contact Information:

(877) 687-7558 Nationwide Toll Free

(310) 719-1040 (Los Angeles)

(714) 546-4272 (Orange County)    E-mail taxattorney@zfcpa.com