U.S. Citizens and Green Card Holders Residing Outside the United States: Options to Become Tax Compliant

By Alexey Manasuev

On June 18, 2014, the IRS released significant changes to its Offshore Voluntary Disclosure Program (“OVDP”) and enhancements to the Streamlined Filing Compliance Procedures (“SFCP”).

For the first time since the IRS released in 2009 its OVDP initiative, the IRS clarified options to become tax compliant for U.S. taxpayers with undisclosed foreign financial assets and accounts. These options are as follows: (i) OVDP; (ii) SFCP (for U.S. taxpayers residing outside the United States and U.S. taxpayers residing in the United States; (iii) delinquent FBAR filing procedures; and (iv) delinquent international information return filing procedures.

Here, you can download decision-making trees on options available to taxpayers to become tax-compliant under the new rules announced by the IRS on June 18, 2014.  The purpose of the tool is to assist taxpayers in evaluating the options available to them under the new rules and to allow taxpayers, based on their facts and circumstances, to navigate the new rules in an easier manner. The decision-making trees are based on the IRS guidance and provide only high-level summary of options available to delinquent U.S. taxpayers in coming into compliance. Taxpayers should consult their U.S. tax advisor to determine what option may be more suitable to them under the taxpayers’ applicable facts and circumstances.

Please click here to view the article.

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