|Taxpayers who reported, and paid tax on, all their taxable income for prior years but did not file FBARs, should file the delinquent FBAR reports according to the instructions (send to Department of Treasury, Post Office Box 32621, Detroit, MI 48232-0621) and attach a statement explaining why the reports are filed late.|
The IRS will not impose a penalty for the failure to file the delinquent FBARs if there are no underreported tax liabilities and you have not previously been contacted regarding an income tax examination or a request for delinquent returns.
|Taxpayers who only have certain delinquent information returns, but no tax due.|
|Non-resident U.S. taxpayers with delinquent returns with low risk factors (including tax owed less than $1,500/year).||Filing Compliance Procedures for Non-Resident U.S. TaxpayersNon-resident U.S. taxpayers should file delinquent tax returns, including delinquent information returns, for the past three years; delinquent FBARs for the past six years; and additional required information regarding compliance risk. Payment of any federal tax and interest due must accompany the submission.|
|Taxpayers with undisclosed foreign accounts and unreported income. Taxpayers seeking protection from criminal prosecution.|
February 16, 2015
OPTIONS AVAILABLE TO OFFSHORE US TAXPAYERS FROM IRS
The IRS has prepared several documents that help explain those requirements, including FS-2011-13 and the U.S. Citizens and Resident Aliens Abroad page on IRS.gov. Situations of taxpayers with offshore compliance issues vary widely given the complexity of this area of tax law. Taxpayers that recently learned of these tax requirements have many options are available outside of the normal filing process to help them get current with their tax obligations. A number of the common situations and potential solutions are outlined below.