The IRS Streamlined Domestic Offshore Procedure (SDOP) provides US taxpayers with an amnesty program.
The IRS SDOP allows non-willful delinquent filers to proactively become compliant with offshore accounts. Aggressive audits of unreported offshore bank accounts by the IRS and other moving targets in the tax reporting world mean the SDOP may be an option for you. Keep reading to learn more about the SDOP tax amnesty program and learn how working with a tax attorney under the attorney-client privilege can be a major benefit in these scenarios.
U.S. citizens, legal U.S. residents, and their estates must meet the following eligibility requirements for the IRS SDOP:
A successful candidate for the IRS SDOP will:
A taxpayer who complies with the Service’s Streamlined Domestic Offshore Procedures will not be subject to failure-to-file and failure-to-pay penalties, accuracy-related penalties, information return penalties, or FBAR penalties.
If a taxpayer is not a U.S. resident, they will qualify instead for the Streamlined Foreign Offshore Procedures. If you have been outside of the United States for more than 330 full days during the last three tax years, you may be considered a non-resident.
Non-willful conduct is conduct that is the result of a good faith misunderstanding of the law. It also encompasses conduct that is due to negligence or mistake. Willful blindness may disqualify a taxpayer from relief.
The Offshore Voluntary Disclosure program was closed by the IRS in September of 2018. Our team of experienced tax professionals can guide you through current programs for taxpayers with undisclosed foreign financial assets.
Contact our international tax attorneys for a consultation by clicking here to schedule a meeting or by calling us at (410) 497-5947 to get started today.