Onestoptaxprep

In anticipation of the impact of the FATCA, the IRS is allowing taxpayers to come clean and voluntarily rectify their non-compliance. In this respect, to avoid and prevent possible negative consequences of the FATCA reporting for non-compliant Americans the IRS has set up two programs.


1. Streamlined Filing Compliance Procedure
•You can participate if you have not filed tax returns before;
•You are required to file only 3 years of delinquent tax returns;
•You need to report your non-U.S. bank accounts to the U.S. Department of the Treasury for the last 6 years (FBAR);
•No penalties are involved with this program.

2. Offshore Voluntary Disclosure Program (OVDP)
•Applies to all taxpayers not eligible for the streamlined filing process;
•You are required to amend your tax returns for the last 8 years;
•You need to report your foreign bank accounts for the period also going back 8 years;
•You need to pay a 20% penalty on any tax owed during the 8 years;
•In addition, you will have to pay a penalty amounting to 27.5% of the highest aggregate value in that 8-year period.

To read more about FATCA, go to http://onestoptaxprep.nl/tax-information/fatca/index.html

If you have any questions regarding participation in one of the IRS tax amnesty programs, feel free to contact us!