Has the IRS already contacted you about the unfiled FBARs or unreported foreign income - through an audit, examination, or direct correspondence?
Streamlined procedures are only available to taxpayers who have not been contacted by the IRS regarding the noncompliance being corrected. If you have received an IRS audit notice, civil examination notice, or criminal investigation notification relating to your foreign accounts or income, the Streamlined programs are not available. IRM 4.26.16.4.
2
Criminal Investigation
Question 2 of 6
Are you currently under criminal investigation by any US government agency?
Streamlined procedures are unavailable to taxpayers under criminal investigation by the IRS Criminal Investigation division or any other US government agency. If you believe you may be under investigation, consult a criminal tax defense attorney before taking any action. IRM 4.26.16.4(3).
3
Non-Willfulness
Question 3 of 6
Can you truthfully certify that your failure to report foreign financial accounts and/or income was non-willful - resulting from negligence, inadvertence, mistake, or misunderstanding of the law?
This is the most critical requirement. "Non-willful" means you did not knowingly or intentionally fail to comply. Common non-willful situations: you were unaware of the FBAR requirement, you relied on incorrect professional advice, you inherited foreign accounts and did not know they had to be reported, or you simply misunderstood the rules. Willful violations do not qualify for Streamlined. Making a false non-willfulness certification exposes you to criminal liability. If you are uncertain whether your conduct was willful, consult a qualified tax attorney before certifying. IRM 4.26.16.4(2).
4
Residency Test
Question 4 of 6
In any of the three years covered by your delinquent returns, did you meet the non-residency requirement for the Streamlined Foreign program?
The Streamlined Foreign Offshore Procedures (SFOP) require that in at least one of the three years covered by the amended/delinquent returns, you had: (a) no US abode, AND (b) were physically outside the United States for at least 330 full days. If you cannot meet this test for any of the three years, you may only qualify for the Streamlined Domestic program (SDOP). IRM 4.26.16.6(2).
5
Tax Compliance
Question 5 of 6
Are you current on all US tax filings and payments for years not covered by the Streamlined submission?
You must be current on all other US tax obligations to use Streamlined procedures. This means all returns that were due (including extensions) have been filed, and all taxes owed have been paid. If you have unfiled returns beyond the three-year Streamlined period, those must be addressed separately. IRM 4.26.16.5.
6
Unreported Income
Question 6 of 6
Did the foreign accounts generate unreported income (interest, dividends, capital gains) during the years you failed to file FBARs?
If foreign accounts had no income (zero balance or no earnings), the Streamlined submission may still be required to correct the FBAR failures, but the tax impact may be minimal. If there was unreported income, it must be reported on amended returns filed as part of the Streamlined submission, with tax and interest paid. This does not affect eligibility - it affects the cost of the program.
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