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Streamlined Domestic 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 key difference between these two programs is that the first requires the taxpayer to meet the non-residency test. This has nothing to do with citizenship, or whether you filed 1040 or 1040NR, or the physical presence test.

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

If the taxpayer was present in the US (did not meet the above test), then they would only be eligible for DSOP.

The primary benefit of both programs is amnesty from FBAR penalties, failure to file penalties, and accuracy-related penalties.

Whole Story at TFX.

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