On October 8, 2014, the IRS published "Streamlined Filing Compliance Procedures for U.S. Taxpayers Residing in the United States Frequently Asked Questions and Answers." The IRS updated these FAQs on September 29, 2016, bring the total of questions to 17.
These answers (and questions) are a bit technical. For more digestible content, click on the box below for our answers to more common concerns.
Below, we've laid out the questions of the FAQ. These do not apply if you live outside the US. Commentary is indicated by underlined italics, and suggests possible future changes or items of inconsistency.
Frequently Asked Question 1:
Is the 5-percent penalty for Streamlined Domestic Offshore filers intended to reach foreign financial assets in which the taxpayer has no personal financial interest or only a partial interest?
No. Read literally, the third paragraph of the description of the scope of the Streamlined Domestic Offshore Procedures says that the penalty applies to all reportable but unreported foreign financial assets (basically, this third paragraph states that the gross, and not net, income not reported on your 1040, timely-filed FBAR, or required 8938 can come back to haunt you. If it was not reported on all three, then it gets reported in the penalty computation. Meanwhile, personal financial assets issued or held by a foreign corporation also have to be reported on a 8938).
However, the penalty is not intended to reach assets in which the taxpayer had no financial interest, such as an employer’s account over which the taxpayer had only signature authority, or portions of assets in which the taxpayer had no personal financial interest (the only way the IRS can make sure that a taxpayer didn't have any financial interest in these assets is by a review of a submission by a real person, which the IRS claims would not happen; after all, the whole purpose of the streamlined program is for less IRS involvement). In order to address questions left open by the brief definition of assets in the penalty base in the Streamlined Domestic Offshore Procedures, the Service will apply the principles announced in OVDP FAQs 31 through 33, 35.1, and 38 through 41.
(For convenience sake, here are Standard OVDP FAQs 31-33, 35.1 and 38-41. Note: OVDP FAQ 35 was specifically left out, and that missing piece will soon prove baffling)
Standard OVDP FAQ 31:
When determining the highest value of each OVDP asset for each year what exchange rate should be used?
Convert foreign currency by using the foreign currency exchange rate at the end of the year regardless of when, during the year, the highest value was reached. In valuing currency of a country that uses multiple exchange rates, use the rate that would apply if the currency in the account were converted into United States dollars
at the close of the calendar year. Each OVDP asset is to be valued separately.
OVDP FAQ 32:
If a taxpayer's violation includes unreported foreign individual accounts and business accounts (for an active business), does the offshore penalty include the business accounts?
Yes. Assuming that there is unreported gross income with respect to all the accounts, they all will be included in the penalty base. No distinction is drawn based on whether the account is a business account or a savings or investment account.
OVDP FAQ 33:
Is there a de minimis unreported income exception relating to tax noncompliance and the offshore penalty?
No. No amount of unreported gross income is considered de minimis (not enough to merit the IRS's interest) for purposes of determining whether there has been tax noncompliance with respect to an OVDP asset. Even one dollar of unreported gross income from an OVDP asset will bring it into the offshore penalty base.
OVDP FAQ 35.1:
If a taxpayer holds OVDP assets through an entity or a series of entities, may the taxpayer apply valuation discounts such as a discount reflecting lack of marketability, a discount for holding a minority interest, or a discount for holding tenants in common interest?
No. The offshore penalty will be applied to the taxpayer’s interest in the underlying OVDP assets without regard to valuation discounts.
OVDP FAQ 38:
If, in addition to other noncompliance, a taxpayer has failed to file an FBAR to report an account over which the taxpayer has signature authority but no beneficial interest (e.g., an account owned by his employer), will that foreign financial account be included in the base for calculating the taxpayer’s offshore penalty?
No. The account the taxpayer has mere signature authority over will be treated as unrelated to the tax noncompliance the taxpayer is voluntarily disclosing. The taxpayer may cure the FBAR delinquency for this account at any time prior to being contacted by the IRS regarding an income tax examination or delinquent returns by filing the FBAR with an explanatory statement. See section 3 of “Options Available For U.S. Taxpayers with Undisclosed Foreign Financial Assets” for instructions. The answer might be different if: (1) the account over which the taxpayer has signature authority is held in the name of a related person, such as a family member or an entity controlled by the taxpayer; (2) the account is held in the name of a foreign entity for which the taxpayer had a Title 26 reporting obligation; or (3) the account was related in some other way to the taxpayer’s tax noncompliance (e.g., was used by the taxpayer as a conduit). In these cases, the taxpayer may have an OVDP asset to which the offshore penalty applies. See FAQ 35
(What!? The Streamlined OVDP FAQ specifically omitted OVDP FAQ 35 in penalty base calculations, yet FAQ 38 points us back to OVDP FAQ 35. So is OVDP FAQ 35 operative or non-operative?)
OVDP FAQ 39:
Parents have a jointly owned foreign account on which they have made their children signatories; the children have an FBAR filing requirement but no income. How should the family correct this, and how will the offshore penalty be applied?
Signatories with no ownership interest in the account, such as the children in this scenario, should file delinquent FBARs with explanatory statements. See section 3 of “Options Available for U.S. Taxpayers with Undisclosed Foreign Financial Assets” for instructions. As for the parents, only one offshore penalty will be applied with respect to voluntary disclosures relating to the same foreign financial account. In the example, the parents will be jointly required to pay a single offshore penalty (at the applicable offshore penalty rate of either 27.5 percent or 50 percent) on the account. This can be satisfied by one parent paying the total offshore penalty or by each paying a portion, at the taxpayer's option. However, any joint owner of a foreign financial account who does not make a voluntary disclosure may be examined and subject to all applicable penalties.
OVDP FAQ 40:
If multiple taxpayers are co-owners of an OVDP asset, who will be liable for the offshore penalty?
In the case of co-owners, each taxpayer who makes a voluntary disclosure will be liable for the penalty on his percentage ownership of the highest value of the OVDP asset. The burden will be on the disclosing taxpayer claiming ownership of less than 100 percent of the OVDP asset to establish the extent of his ownership. His voluntary disclosure is effective as to his tax liability only. It does not cover the other co-owners. The IRS may examine any co-owner who does not make a voluntary disclosure. Co-owners examined by the IRS will be subject to all applicable penalties (right, except that co-owners may not be US persons and therefore not be subject to either the Bank Secrecy Act of 1970 or the universal taxing jurisdiction of the IRS).
OVDP FAQ 41:
If there are multiple individuals with signature authority over an OVDP asset held in the name of a trust, does everyone involved need to file delinquent FBARs? If so, must everyone pay the offshore penalty?
Only one offshore penalty will be applied with respect to voluntary disclosures relating to the same OVDP asset. The penalty may be allocated among the taxpayers with beneficial ownership making the voluntary disclosures in any way they choose. The reporting requirements for filing an FBAR, however, do not change. Therefore, every person who is required to file an FBAR must file one.
Streamlined OVDP FAQ Q2:
I am a U.S. resident making a Streamlined Domestic Offshore submission. In addition to foreign financial accounts and assets, I own an income producing rental property in a foreign jurisdiction that is not reportable on FBAR or Form 8938. Is the real estate included in the Streamlined Domestic Offshore penalty base?
No. Any asset (tax compliant or non-compliant) that was not the kind of asset reportable on either FBAR or Form 8938 is not included in the penalty base for the Streamlined Domestic Offshore Procedures. (This is good, as it indicates our position that Standard FAQ 35 is not operative, despite the language of FAQ 38 that is. If real estate is included in a foreign entity, then you may have to include Foreign 5471, 5276, and 8865 (Note: The IRS pulled the 2011 8938 off of their website. There have been many changes made in the 2012 OVDP)).
Streamlined FAQ Q3:
The Streamlined Domestic Offshore Procedures provide that foreign financial assets subject to the 5-percent penalty include assets that should have been, but were not, reported on Form 8938. The instructions for Form 8938 provide that any assets reported on timely filed Forms 3520 or 5471 need not be reported on Form 8938 for the same tax year. Are assets I report on delinquent Forms 3520 or 5471 excluded from the 5-percent penalty base?
This question is asked horribly. The important thing to understand is if you did not file a Form 5471 (no mention of partnership), then the answer is no. No. The instruction referred to was designed to eliminate the burden of duplicate reporting and does not affect the definition of “foreign financial asset”. All assets that meet the definition of “foreign financial asset” in the instructions for Form 8938 and not reported on that form should be included in the 5-percent penalty base, unless the taxpayer reported them on timely filed Forms 3520 or 5471. (E.g., if you file a 3520 but don't file an 8938, this is outside a penalty base. If you file a 5471 and do not file an 8938, this is also not included in the penalty base. Question: if you properly file an 8938 and did not file a 5471 or 3250, does this go into your penalty base? This FAQ does not answer the question. Our position would be that it should stay out of the penalty base, per the overlapping purpose of the Form 8938.)
Streamlined Domestic Compliance Procedure (SDCP) Q4:
I am a U.S. resident making a Streamlined Domestic Offshore submission. I am the 100-percent owner of an incorporated business with various assets, including financial accounts. Does the 5-percent penalty base include the stock in the corporation or just the underlying financial accounts?
The penalty base includes the stock in the corporation (and not the underlying financial accounts) unless it is a disregarded entity for federal income tax purposes. Under the instructions for Form 8938, stock in a foreign corporation is a specified foreign financial asset. Whether the stock in the foreign corporation or the underlying foreign financial accounts is reportable on Form 8938, and therefore is included in the penalty base, depends on whether the corporation is a disregarded entity. If it is, the instructions require the reporting of the underlying foreign financial accounts, which would then be included in the penalty base. However, if the corporation is not a disregarded entity, then the instructions provide that the taxpayer is not considered the owner of the underlying assets solely as a result of the taxpayer’s status as a shareholder.
The same principle would apply to assets that are held in a foreign partnership or trust.
(If you are a disregarded entity, the 5% is attached to the value of the accounts. If you are a "regarded" entity, it is the value of the stock. Your balance sheet, plus shareholder equity, would likely be the value.)
SCDP FAQ Q5:
How should I value stock in a foreign corporation that is included in the 5-percent penalty base for Streamlined Domestic Offshore filers?
Any reasonable method of valuing the stock can be utilized, such as using the balance sheet on the Form 5471, for purposes of calculating the 5-percent penalty. No valuation discounts may be taken on foreign financial assets subject to the 5-percent penalty. The principles in 2014 OVDP FAQ 35.1 are applied to Streamlined Domestic Offshore submissions.
(The rule is that there is no rule. So, be reasonable and consistent. Once again, this valuation requires human review to ensure that the numbers being reported are accurate.)
IRS SCDP FAQ Q6:
How do I calculate the 5-percent penalty for Streamlined Domestic Offshore filers?
Begin the computation by identifying the assets included in the penalty base for each of the last six years. These assets include:
- For each of the six years in the covered FBAR period, all foreign financial accounts (as defined in the instructions for FinCEN Form 114) in which the taxpayer has a personal financial interest that should have been, but were not reported on an FBAR.
- For each of the three years in the covered tax return period, all foreign financial assets (as defined in the instructions for Form 8938) in which the taxpayer has a personal financial interest that should have been, but were not reported on Form 8938.
- For each of the three years in the covered tax return period, all foreign financial accounts/assets (as defined in the instructions for FinCEN Form 114 or IRS Form 8938) for which gross income was not reported for that year.
Once the assets in the penalty base have been identified for each year, enter the value of the taxpayer’s personal financial interest in each asset as of December 31 of the applicable year on the Certification by U.S. person residing in the United States for Streamlined Domestic Offshore Procedures (Form 14654). For any year in which a foreign financial account was FBAR compliant and (for the most recent three years) in which a foreign financial asset was both Form 8938 and Form 1040 compliant, the amount entered on the form will be zero. Once the asset values have been entered on the form, add up the totals for each year and select the highest aggregate amount as the base for the 5-percent penalty.
Streamlined OVDP FAQ Q7:
I am a U.S. resident who filed compliant tax returns (including Forms 8938) and FBARs for the most recent three years for which tax returns were due. However, I failed to properly report a foreign financial asset in years prior to that and did not make a voluntary disclosure. I am otherwise eligible to make a Streamlined Domestic Offshore submission. May I make a streamlined submission and, if so, how is the 5-penalty calculated?
You may make a streamlined submission. Because the most recent three years are fully compliant, there will be no assets in the penalty base for those years. Follow the procedure in answer 6 above for the three years prior to that to calculate the aggregate year-end account balances and year-end asset values for each of those three years. The penalty is 5 percent of the highest aggregate amount. (This FAQ flatly contradicts the delinquent FBAR procedures; it specifically states that you do not need an OVDP).
SCDP FAQ 8
I have a Canadian registered retirement savings plan (RRSP), registered retirement income fund (RRIF), or other similar Canadian retirement plan. I am an “eligible individual” as defined in § 4.01 of Rev. Proc. 2014-55. Under the procedures in effect prior to the issuance of Rev. Proc. 2014-55, I did not make a timely election under Article XVIII(7) of the U.S.–Canada income tax treaty to defer U.S. income tax on undistributed income earned by my Canadian retirement plan.
How should I report my Canadian retirement plan with my Streamlined submission, and will it be included in the penalty base?
The IRS clarified that Canandian RRSPs and RRIFs will nto be included in the penalty base.
Under § 4.02 of Rev. Proc. 2014-55, you are treated as having made the election. See Rev. Proc. 2014-55, § 7. Your Canadian retirement plan will not be included in the 5-percent penalty base. In the narrative statement of facts on Form 14654, please state that you are an “eligible individual” under Rev. Proc. 2014-55.
You may need to report your Canadian retirement plan on FBARs or Forms 8938. Please refer to the instructions for these forms for more information.
SDCP FAQ 8
Same facts as FAQ 8 except my Canadian retirement plan is the only foreign financial asset I own or control, and, consequently, I had no unreported gross income from any foreign financial assets. Do I need to report my Canadian retirement plan under the Streamlined Domestic Offshore Procedures?
No. You do not need to report your interest in the Canadian retirement plan under the Streamlined Domestic Offshore Procedures. Please file any required delinquent FBARs pursuant to the Delinquent FBAR Submission Procedures and any required delinquent Forms 8938 with a reasonable cause statement pursuant to the Delinquent International Information Return Submission Procedures.
SCDP FAQ 10
Same facts as FAQ 8 except I am not an “eligible individual” because I reported as gross income on a U.S. Federal income tax return some or all of the accrued but undistributed earnings in my Canadian retirement plan. See § 4.01 C) of Rev. Proc. 2014-55. But I now realize I could have deferred the tax on the accrued but undistributed earnings in my Canadian retirement plan. Additionally, I have other tax compliance issues that need to be corrected through a Streamlined submission.
How do I correct my reporting of accrued but undistributed earnings in my Canadian retirement plan, and will my Canadian retirement plan be included in the penalty base?
If you submit amended income tax returns through the Streamlined Domestic Offshore Procedures and meet the requirements discussed below, you will be afforded relief consistent with Rev. Proc. 2014-55 for the tax years included in your submission.
This procedure is not available if you reported as gross income on a U.S. Federal income tax return accrued but undistributed earnings in a Canadian retirement plan for one or more tax years beyond the scope of your Streamlined submission. Additionally, this procedure is not available if you failed to report any and all distributions received from the plan as if you had made an election under Article XVIII(7) of the U.S.–Canada income tax treaty. See § 4.01 D) of Rev. Proc. 2014-55. In these cases, you must seek the consent of the Commissioner as directed by § 4.04 of Rev. Proc. 2014-55.
If you qualify to use this procedure, your Canadian retirement plan will not be included in the 5-percent penalty base. In the narrative statement of facts on Form 14654, please state that you have met the other requirements to be an “eligible individual” under § 4.01 of Rev. Proc. 2014-55. See A), B), and D) of § 4.01 of Rev. Proc. 2014-55. Please also state that the reporting of accrued but undistributed earnings was limited to the tax years in your Streamlined submission.
You may need to report your Canadian retirement plan on FBARs or Forms 8938. Please refer to the instructions for these forms for more information.
SCDP FAQ 11
Same facts as FAQ 8 except I am not an “eligible individual” because I reported as gross income on a U.S. Federal income tax return some or all of the accrued but undistributed earnings in my Canadian retirement plan. See § 4.01 C) of Rev. Proc. 2014-55. But I now realize I could have deferred the tax on the accrued but undistributed earnings in my Canadian retirement plan. Additionally, I have no other tax compliance issues that need to be corrected through a Streamlined submission.
You should not use the Streamlined Domestic Offshore Procedures because you have no tax compliance issues beyond reporting accrued but undistributed earnings in your Canadian retirement plan. Therefore, you should follow normal procedures for filing amended income tax returns or seek the consent of the Commissioner as directed by § 4.04 of Rev. Proc. 2014-55.
You may need to report your Canadian retirement plan on FBARs or Forms 8938. Please refer to the instructions for these forms for more information.
SCDP FAQ 12
I made a Streamlined Domestic Offshore submission and provided amended income tax returns, a Form 14654, Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures, and payment of all tax, penalty, and interest. I recently realized that I included in the highest account balance/asset value of my foreign financial assets my Canadian registered retirement savings plan (RRSP), registered retirement income fund (RRIF), or other similar Canadian retirement plan. Further, I am an “eligible individual” as defined in section 4.01 of Rev. Proc. 2014-55. May I request reconsideration of the miscellaneous offshore penalty amount due to the inclusion of my Canadian retirement plan in the penalty base? How do I do so?
Yes, you may request reconsideration of the miscellaneous offshore penalty amount. Complete and sign Form 14708, Streamlined Domestic Penalty Reconsideration Request Related to Canadian Retirement Plans (form pending publication as of the date of posting of this FAQ), and mail it to:
Internal Revenue Service
3651 South I-H 35
Stop 4305 AUSC
Attn: Streamlined Unit
Austin, TX 78741
Example: The taxpayer reported on her original certification a highest account balance/asset value of $130,000, consisting of year-end balances of the following foreign financial assets:
| Checking account | $10,000 |
| Savings account | $20,000 |
| RRSP account | $100,000 |
| Total | $130,000 |
The taxpayer computed the miscellaneous offshore penalty as $6,500 ($130,000 x 5%). The taxpayer would like to request reconsideration of the miscellaneous offshore penalty amount. She computes her revised highest account balance/asset value as follows:
| Checking account | $10,000 |
| Savings account | $20,000 |
| Total | $30,000 |
After removing the value of the RRSP, the revised miscellaneous offshore penalty amount is $1,500 ($30,000 x 5%). In completing Form 14708, the taxpayer should enter $6,500 on Line 1, $1,500 on Line 2, and $5,000 on Line 3.
This example assumes that the revised highest account balance/asset value is in the same year as the original certification. But the revised highest account balance/asset value may be for a different year. If your revised highest account balance/asset value is for a different year than that in your original certification, please complete the appropriate section of Form 14708 to indicate the change.
SCDP FAQ 13
What facts do I need to include in completing the narrative statement of facts portion of the Form 14654?
Provide specific reasons for your failure to report all income, pay all tax, and submit all required information returns, including FBARs. Include the whole story including favorable and unfavorable facts. Specific reasons, whether favorable or unfavorable to you, should include your personal background, financial background, and anything else you believe is relevant to your failure to report all income, pay all tax, and submit all required information returns, including FBARs. Additionally, explain the source of funds in all of your foreign financial accounts/assets. For example, explain whether you inherited the account/asset, whether you opened it while residing in a foreign country, or whether you had a business reason to open or use it. And explain your contacts with the account/asset including withdrawals, deposits, and investment/management decisions. Provide a complete story about your foreign financial account/asset.
The following points address common situations that may apply to you:
- We realize that many taxpayers failed to acknowledge their financial interest in or signature authority over foreign financial accounts on Form 1040, Schedule B. If you (or your return preparer) inadvertently checked “no” on Schedule B, line 7a, simply provide your explanation.
- We realize that some taxpayers that owned or controlled a foreign entity (e.g., corporation, trust, partnership, IBC, etc.) failed to properly report ownership of the entity or transactions with the foreign entity. If you (or your return preparer) inadvertently failed to report ownership or control of the foreign entity or transactions with the foreign entity, explain why and include your understanding of your reporting obligations to the IRS and to foreign jurisdictions.
- If you relied on a professional advisor, provide the name, address, and telephone number of the advisor and a summary of the advice. Also provide background such as how you came into contact with the advisor and frequency of communication with the advisor.
- If married taxpayers submitting a joint certification have different reasons, provide the individual reasons for each spouse separately in the statement of facts.
SCDP FAQ 14
In one or more of the most recent 3 years for which the U.S. tax return due date (or properly applied for extended due date) has passed, I filed joint income tax returns. But my spouse/former spouse will not sign joint amended returns or a joint certification on Form 14654 for a Streamlined submission. What can I do? Am I precluded from using the Streamlined Domestic Offshore Procedures?
We understand that in certain cases (including but not limited to separation or divorce), your spouse/former spouse may not be willing to sign joint amended income tax returns or a joint certification on Form 14654.
You may submit a joint amended income tax return with only your signature to Streamlined Domestic Offshore Procedures so long as your joint amended return shows a net increase in tax. Please explain your inability to secure your spouse’s/former spouse’s signature in the narrative statement of facts on Form 14654. And write “SDO FAQ 14” in red ink in the area for your spouse’s signature on the amended returns and Form 14654.
As a matter of routine processing, the Service will request the other spouse’s signature on joint amended returns with only one signature. If at the time the Service makes a request for your spouse’s/former spouse’s signature on a joint amended return or joint certification you are still unable to secure your spouse’s/former spouse’s signature, please respond to the inquiry by referencing this FAQ.
You may not submit a joint amended income tax return with only your signature to Streamlined Domestic Offshore Procedures showing a net decrease in tax or an increase in credit.
SDCP FAQ 15
Who can I contact if I have general questions about the terms of the Streamlined Filing Compliance Procedures or completing Form 14654?
If you have questions about the terms of the Streamlined Filing Compliance Procedures or completing Form 14654, you may contact the OVDP Hotline at (267) 466-0020. The OVDP Hotline will not provide case-specific or legal advice. If the IRS provided advice, they would be liable for it, if the advice turns out to be wrong. So the safest thing (for them) is to give no advice.
SDCP FAQ 16
I realized that I made a mistake in my submission to the Streamlined Filing Compliance Procedures. How do I correct my mistake?
If you made a mistake in your submission to the Streamlined Filing Compliance Procedures and your returns previously submitted are not under examination, you may correct the error by providing corrected amended returns and/or an amended Form 14654. On the top of the Form 14654, write “amended” in red ink, and on the top of the first page of each corrected amended tax return write "Amended Streamlined Domestic Offshore" in red ink. Explain all facts and circumstances concerning the error in the original Streamlined submission. See SDO FAQ 13 for relevant information to provide.
Mail the amended submission to:
IRS
3651 S. IH 35
MS 6063 AUSC
Attn.: Streamlined Procedures
Austin, TX 78741
Example 1 (corrected amended tax returns and amended Form 14654): The taxpayer made an SDO submission on February 1, 2016, and she just realized she failed to include a foreign financial asset on Form 14654 and include that asset in the SDO penalty base. Additionally, she failed to include income from that omitted foreign financial asset on her Forms 1040X for the tax periods in her Streamlined submission, tax years 2012, 2013, and 2014. She must provide amended income tax returns for tax years 2012, 2013, and 2014, an amended Streamlined certification on Form 14654, and payment for increases in tax, interest, and the SDO MOP. The amended Form 14654 must include all facts and circumstances concerning the error in the original Streamlined submission. Additionally, if the taxpayer made a mistake in filing her FBARs with FinCEN, she must efile amended FBARs with FinCEN.
Example 2 (amended Form 14654 only): The taxpayer made an SDO submission on February 1, 2016, and she just realized she failed to include a foreign financial asset on Form 14654 and include that asset in the SDO penalty base. She fully reported all income from the foreign financial asset on her amended income tax returns in her original Streamlined submission. She must provide an amended Streamlined certification on Form 14654, and payment for the increase in the SDO MOP. The amended Form 14654 must include all facts and circumstances concerning the error in the original Streamlined submission. Additionally, if the taxpayer made a mistake in filing her FBARs with FinCEN, she must efile amended FBARs with FinCEN.
SCDP FAQ 17
I am eligible for a Social Security Number (SSN) but do not have one at this time. May I make a submission to the Streamlined Filing Compliance Procedures without an SSN? If I make a submission without an SSN, what are the consequences?
If you are eligible for an SSN but do not have one, you may not use the Streamlined Filing Compliance Procedures. The terms of the Streamlined Filing Compliance Procedures require a valid Taxpayer Identification Number (TIN). For U.S. citizens, resident aliens, and certain other individuals, the proper TIN is a valid SSN. If you make a submission to the Streamlined Filing Compliance Procedures without a valid SSN, then the IRS may process your returns after assigning an IRSN. See IRM 3.13.5.70 and 3.13.5.71. But taxpayers that make submissions to the Streamlined Filing Compliance Procedures without valid SSNs are not eligible for the favorable penalty provisions of the Streamlined Filing Compliance Procedures. The IRS will process such returns subject to penalties applicable outside of the Streamlined Filing Compliance Procedures.
If you need assistance with a submission, or if you'd like a second opinion on a submission that was created for you, contact us. We can help.
