This just arrived from Moodys Tax, with a link to the full text in the announcement.
Published on Friday, 31 August 2012 14:55Written by Roy A. Berg JD, LLM (US Tax) and James Gifford JD, LLM (US Tax)
As discussed in our June 28, 2012 blog, the Internal Revenue Service (“IRS”) previously announced new procedures that will enable non-resident US taxpayers who demonstrate “low compliance risk” to bring unfiled tax returns and related tax reporting obligations current and avoid potentially ruinous penalties. This afternoon the IRS released details regarding the new program for non-residents (such as Americans living in Canada) to get compliant with past tax obligations. We’ll have a more detailed analysis on Tuesday, but for now here are a few highlights:
- Persons qualifying for, submitting under the new “Streamlined Filing Procedure,” and presenting a low compliance risk will not have to pay penalties or face follow-up review by the IRS.
- To qualify, you must be a non-resident US taxpayer who has lived outside of the US since January 1, 2009 and has not filed a US return since.
- To participate, taxpayers must file three years of tax returns and information returns along with six years of “FBARs.” Tax and interest must be paid at the time of filing. A valid Taxpayer Identification Number or Social Security Number is required.
- The determination of compliance risk is based on a large number of factors and the answers to a special questionnaire required as part of the submission.
- Generally, amended returns will not be accepted in this program. Where they are, the amended returns will be considered “high risk” and subject to increased scrutiny.
- Retroactive relief for deferral on Canadian retirement plans is available.
- The Streamlined Filing Procedure does not protect against the risk of criminal prosecution.
The full text of today’s announcement is available HERE.
NOTE: Thank you, bubblebustin, for finding the link for this information on the revamped IRS website *. I am adjusting the Moodys link above (and HERE) to reach the new “IRS Instructions for New Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. Taxpayers”.
*EXPLANATION (compliments of ERIC!)
Further analysis: from “renounceuscitizenship”
I’ve read it and my conclusion only is ‘good luck on roping more in’. Those that do probably will have already been contemplating it and it suits them. It will likely scare newcomers to the issue. There may be deeper-digging ostriches until the reality of full FATCA implementation, if FATCA can’t be stopped or drastically changed. Now to look for the media reactions to this latest from the US IRS. I’m glad it is, this instance, a timely announcement!