New Streamline procedures from 17 June, 2014

I have read about the revised streamline procedures for delinquent tax returns and from what I can tell, I don't have to fill out the compliance questionaire anymore, but the irs did put a link for a form to fill out and sign which needs to be attached to every delinquent return when filing under streamlined procedures. 

This link shows the .pdf to fill out, but it has the word DRAFT written across each page.  Does anyone know how I can get this form without DRAFT written on it?  Thanks in advance...

http://www.irs.gov/pub/irs-utl/CertNonResidents.pdf [nofollow]

As you mentioned the current “IRS Streamlined Filing Compliance Procedures”, announced by the IRS on 18 June 2014 offer a simplified amnesty for US taxpayers who have not filed complete US tax or informational returns in recent years - and who have non-US income and assets. In most circumstances, this is expected to result in no penalties and provide far more comfort than any other program announced by the IRS in recent years.

Essentially, qualifying American taxpayers will be welcomed back so long as they:
1.   Have lived outside the States for at least than one of the three most recent calendar years for which the US tax return was due,
2.   Prepare and file at least three years of amended or delinquent tax returns for the years before the current tax year. Although this has still to be confirmed by the IRS, most readers of the IRS website that this will be the years 2010, 2011 and 2012 if an extension has been filed for the 2013 return; or 2011, 2012 and 2013 if no extension has been filed,
3.   Include any relevant payment of tax with the returns,
4.   Write a declaration “in red” on the first page of each return, announcing that the documents are filed under the new procedures,
5.   File six years of delinquent or corrected FBARs,
6.   Include a signed declaration certifying that any past tax omissions “resulted from non-wilful conduct”,
7.   Summarise in words typed or written within this declaration reasons why the “non-wilful conduct is conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law”. (Wilful conduct incidentally by contrast is defined generally as a voluntary and purposeful violation of a known legal duty.) The purpose of this section of the form is to allow a chance for a taxpayer to tell a story to the IRS explaining why accurate paperwork was not filed earlier.

In practice, this program will require preparing at least three years of accurate US income tax returns and FBARs (and any other informational returns that are relevant). Once these are completed, a form called “Certification by U.S. Person Residing Outside of the U.S.” (http://www.irs.gov/pub/irs-utl/CertNonResidents.pdf ) will need to be prepared and included as a part of the package to be delivered to the IRS.

The details that were announced by the IRS on 18 June 2014 can be found here:
•   http://www.irs.gov/Individuals/International-Taxpayers/Options-Available-For-U-S--Taxpayers-with-Undisclosed-Foreign-Financial-Assets
•   http://www.irs.gov/Individuals/International-Taxpayers/Streamlined-Filing-Compliance-Procedures
•   http://www.irs.gov/Individuals/International-Taxpayers/U-S-Taxpayers-Residing-Outside-the-United-States

The “IRS Streamlined Filing Compliance Procedures”, are not the only method of delivering paperwork to the IRS; one can still file quietly or with a letter arguing reasonable cause.

The acid test for deciding whether to use the streamlined procedures for many people will be whether they are comfortable arguing that their conduct was non-wilful. This blog post highlights how complex the question can be: http://federaltaxcrimes.blogspot.co.uk/2014/07/yesterday-i-wrote-blog-titled-willful.html . Many people will still require professional advice.

Thank you very much for your response.  I think it's really important that people know of the revised rules.  Regarding this form you have mentioned, even in your link it has DRAFT across it, do you know how I can get this form to fill out which doesn't have this written across it? And, do I have to send in a writted explanation why I haven't filed taxes while living outside of the US as well as this form, or is the form sufficient?

In practice, this program will require preparing at least three years of accurate US income tax returns and FBARs (and any other informational returns that are relevant). Once these are completed, a form called “Certification by U.S. Person Residing Outside of the U.S.” (http://www.irs.gov/pub/irs-utl/CertNonResidents.pdf [nofollow] ) will need to be prepared and included as a part of the package to be delivered to the IRS.

Thanks

You may wish to call the IRS to find out what form they want from you if the streamlined procedure is suitable.

Anyone entering the streamlined procedure, will need to type the answer to this question, asked by the IRS:
"My failure to report all income, pay all tax, and submit all required information returns, including FBARs, was due to non-willful conduct. I understand that non-willful conduct is conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law.

I recognize that if the Internal Revenue Service receives or discovers evidence of willfulness, fraud, or criminal conduct, it may open an examination or investigation that could lead to civil fraud penalties, FBAR penalties, information return penalties, or even referral to Criminal Investigation.

In the space below (or on an attached page), provide specific reasons for your failure to report all income, pay all tax, and submit all required information returns, including FBARs.  If you relied on a professional advisor, provide the name, address, and telephone number of the advisor and a summary of the advice. If married taxpayers submitting a joint certification have different reasons, provide the individual reasons for each spouse separately in the statement of facts."

Anyone not using streamlined procedures can still send a reasonable cause letter if so desired.