KB CPA Services P.A.

Domestic Streamlined Offshore & Certification Form 14654

Streamlined Program Overview

The IRS streamlined program breaks down into two camps.

1. Streamlined Foreign Offshore Program (SFOP)

2. Streamlined Domestic Offshore Program (SDOP) – described herein

The main difference between these two programs is that the first program bounds the taxpayer to comply non-residency test requirements. It has nothing to do with citizenship, or whether you entered 1040 or 1040NR, or the physical presence test.

To be eligible for more lenient program (Option 1 – Streamlined Foreign Offshore) the taxpayer must be outside of the U.S. for at least 35 days in 1 of the last 3 years (both programs require 3 tax returns + 6 FBARs).

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If the taxpayer resided in U.S. and did not qualify the above test than he is eligible only for DSOP

The main benefit of both programs is the waiver of FBAR  penalties, failure to file penalties, and accuracy-related penalties.

Streamlined Domestic Offshore Overview

The second program (SDOP) is bit strict as it requires the taxpayer to pay a penalty of 5% (Title 26 miscellaneous offshore penalty*) of the highest aggregated year-end balance of the taxpayers foreign financial assets during the years in question. On the other hand, the streamlined foreign offshore program provides complete amnesty from penalties.

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Why file Domestic Streamlined Offshore (DSOP)?

Firstly, there is a limited risk of 5% penalty in this program as mentioned above. Secondly, it determine in the examination result that the failure to file is not willful, the program yet provide you with amnesty from draconian ‘Failure to file’ penalties, accuracy related penalties, and FBAR penalties.

This program also caps the number of years to file at 3 – without filing through any of the above two programs, the liability for limitation of previous years does not ends.

Tax Returns, FBARs, and Certification (Form 14654)

The program requires the submission of 3 most recent tax returns, along with informational returns (if any) and 6 most recent FBAR reports. In addition, taxpayer must furnish a certificate (Form 14654), indicating that noncompliance is not intentional. It’s more of an art than science, and you may hire a professional assistant to help for appropriately tailor the statement of certificate.

OUR SPECIAL PACKAGE


The regular price for Streamlined Procedure services if purchased separately:

3 Years of Federal Tax Returns350 * 3 = $1,050
6 Years of FBARs350 * 3 = $1,050
Analysis of situation and applicability for the program$150
Total$1,650
We are offering a special package price of $1,200 – saving you 27%. Sign Up now
Please note – the package above only cover preparation & filing of the Tax Returns & FBAR. There is another form that is required. You can prepare it yourself or we can do it for you.
Preparation of the IRS Certification by U.S. Person Residing Outside of the U.S statement for the Streamlined Procedure costs$300
Preparation of the IRS Certification by U.S. Person Residing in the U.S statement for the Streamlined Procedure costs$500

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