What is the Streamlined Filing Compliance Procedures
By Anthony Diosdi Several years ago the Internal Revenue Service (“IRS”) introduced the Streamlined Compliance Procedures for taxpayers with undisclosed foreign financial accounts. This article describes the Streamlined Compliance Procedures. Unlike the targeted offshore voluntary disclosure programs, where each submission was reviewed by the IRS, under the Streamlined Procedures, the IRS applied its regular audit selection process. With that said, individuals considering entering into the Streamlined Compliance Procedures should understand that it is not an official program offered by the IRS. Instead, the Streamlined Compliance Procedures is merely a filing position. And, as such, the IRS is free to audit a Streamlined Compliance Procedures submission and in appropriate circumstances recommend criminal prosecution and/or additional civil penalties. Under the Streamlined Compliance Procedures, participants are subject to a 5 percent penalty on…