STREAMLINED DOMESTIC OFFSHORE PROCEDURES
What are Streamlined Domestic Offshore Procedures?
Streamlined Domestic Offshore Procedures (sometimes abbreviated as “SDOP”) were created by the IRS on June 18, 2014. Today, this is one of the main voluntary disclosure options for US tax residents who failed to timely and/or accurately disclose their foreign income and foreign assets, including failure to file accurate information returns such as FBAR, Form 8938, Form 5471, Form 8621, Form 3520, Form 926 and other related US international tax forms.
Who can Use Streamlined Domestic Offshore Procedures?
The Procedures is a voluntary disclosure option open to all US taxpayers who can meet the SDOP eligibility requirements.
What are the Advantages of Streamlined Domestic Offshore Procedures?
The Procedures allow noncompliant non-willful US taxpayers who meet the SDOP eligibility requirements to bring their US tax affairs into full compliance through a simplified compliance procedure, pretty much eliminate possibility of a criminal prosecution (unless the SDOP filing is misused and contains a false Certification of Non-Willfulness), avoids income tax penalties and replaces draconian FBAR penalties as well as potential other multiple IRS penalties with a lower one-time 5% Miscellaneous Offshore Penalty.
What are the Main Eligibility Requirements of the Streamlined Domestic Offshore Procedures?
In order to take advantage of the Procedures, US taxpayers must meet three main eligibility requirements – US tax residency, non-willfulness and absence of IRS examination/investigation. Read this article on SDOP Eligibility Requirements for more information. Your eligibility for SDOP should be determined by an international tax attorney who is experienced in the area of offshore voluntary compliance.
Who Can Help Me Understand, Prepare and File My Voluntary Disclosure Using Streamlined Domestic Offshore Procedures?
You should contact the experienced international tax firm of Sherayzen Law Office. International tax attorney Eugene Sherayzen and his team will help help you understand SDOP, evaluate whether you meet the SDOP eligibility requirements, prepare and file all of the legal and tax documents required under SDOP, and defend your voluntary disclosure position(s) against the IRS in case of a subsequent audit.