Understanding IRS Streamlined Filing Compliance Procedures

The irs streamlined procedure was created to help taxpayers who failed to report foreign income or financial accounts but acted non-willfully. For many U.S. citizens living abroad or holding overseas assets, the irs streamlined filing compliance procedures provide a practical path to correct past mistakes without facing severe penalties.

Under the irs streamlined procedure, eligible taxpayers must file amended tax returns for the last three years and submit six years of FBARs (Foreign Bank Account Reports). They must also pay any tax due with interest and certify that their failure to comply was non-willful. The irs streamlined filing compliance procedures are specifically designed for individuals who misunderstood their obligations, rather than intentionally avoided them.