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STREAMLINED FOREIGN
OFFSHORE PROCEDURE

IRS Amnesty

If you have not filed returns, regularize your dangerous Tax situation. 

You can also claim Stimulus Checks 2020 – 2021

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What is the Streamlined Foreign Offshore Procedure – IRS Amnesty?

It is a simplified procedure established by the IRS in 2012 to facilitate tax regularization for U.S. Citizens, in cases where their obligations have not been met, fundamentally not having filed an individual tax return in the past (Form 1040), or not have reported the financial accounts that the holder has opened abroad (FBAR), guaranteeing the taxpayer that the IRS will exempt him from all responsibility for possible past tax crimes.

Can I regularize my tax situation in the United States and how many years I would have to file my tax returns?

Yes. Apart from other reports and sworn statements, you must submit the tax return for the last three years and the report of financial accounts opened abroad for the last six years.

Once the Streamlined Foreign Offshore Procedure is submitted, when it is known that the IRS has approved the regularization?

 

There is no direct or automatic way to know. The saying “no news are good news” is the perfect reflection of the situation. Receiving the refunds is a good indication that the procedure has ended positively.

If I file the IRS Amnesty, the IRS can claim past tax data from me?

 

No. Once the procedure has been filed, the IRS exempts you from reporting or submitting any documentation from previous years.

Could I renounce American citizenship?

Yes, after submitting the IRS Amnesty, you should file two more years, since to relinquish of nationality, they ask you for copies of the Tax Returns of the last five years. In any case, it is very important to take into account before relinquishing if you need to file the “Exit Tax”.

Until when can I file the IRS Amnesty?

The amnesty process has neither start nor end date. It can be filed at any time as long as the three required conditions are met: that the IRS is not investigating you for previous fiscal crimes, that you have paid all debts to the IRS, and that the reason for not having complied with their tax obligations is by ignorance. The amnesty procedure is still in effect at this time (2021), but the IRS has warned that it can end at any time.

 

Can I submit the IRS Amnesty and receive Stimulus Checks from Trump and Biden?

 

Yes, the Stimulus Checks issued by the Trump and Biden’s administrations correspond to the federal budgets of 2020 and 2021 and therefore, when you file the tax returns for these two years, you can receive $ 3,200 in Stimulus Checks. The payment process is simplified if you request the Direct Deposit to a bank account in the USA.

With Streamlined have I access to other credits: for my children, for studies, etc..?

 

Yes, when you file the tax return in the USA, you are entitled to all the discounts that correspond to you per child or for studies, which can be up to $ 1,400 for each child under 17 years of age.

What penalties may there be if I don’t catch up with the IRS?

 

Keep in mind that there is no status of limitation for returns not filed or wrongly filed with errors. It is clear that regardless of the place of residence it is possible for the IRS to prosecute any taxpayer that it is consider delinquent, for not having filed a tax return in a timely manner. The IRS charges penalties for various reasons, including if you don’t: File your tax return on time, or pay any tax you owe on time and in the right way, or prepare an accurate return, or provide accurate information returns. The IRS may charge interest on a penalty if you don’t pay it in full.

How can affect the information that the AEAT has about me in my US Tax Return (Form 1040)?

 

There is an automatic exchange of information between both Tax Agencies, the IRS and the AEAT, based on FATCA. FATCA stand for Foreign Account Tax Compliance Act. The legislation was passed into law in 2010 as part of the unrelated jobs legislation known as the HIRE Law. FATCA is a broad, complex set of rules designed to increase tax compliance by Americans with financial assets held outside the United States.

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