STREAMLINED FOREIGN OFFSHORE PROCEDURE
As U.S. Citizen or Green Card Holder, you have the obligation to declare in the United States, worldwide income regardless of your tax residence, the source of income, or the volume of income. The consequences of failing to comply with this obligation are dangerous since it would be incurring in a federal tax crime.
The Streamlined Procedure is the procedure that facilitates tax regularization for U.S. Citizens in cases where their tax obligations have not been met due to ignorance, mainly not having filed an individual tax return in the past (Form 1040), or not having reported of the financial accounts that the owner has opened abroad (FBAR), guaranteeing the taxpayer that the IRS exempts him from all responsibility for possible past tax crimes.
This procedure consists of completing the last three years of the Individual Federal Tax Return (Form 1040) and the last six years of the report on financial accounts opened abroad or FBAR (Foreign Bank Account Report).
The benefit of regularizing this situation is that you can enjoy the aid and advantages that the U.S. government offers. The most obvious are the so-called Stimulus Checks, which have been distributed during 2020 and 2021, as aid for the pandemic (EIP1, EIP2 and EIP3). A total of $3,200 in two years. This year is the last one in which the two checks that were distributed in 2020 (EIP1 and EIP2) and that correspond to a total of $1,800 can be claimed.
Stimulus Checks, also known as Economic Impact Payments (EIPs), are not taxable and, as a US Citizen or Green Card Holder, neither in the U.S nor Spain, you have the right to claim them, even if you have not lived in the United States.
The deadline for the presentation of the Streamlined is April 15, 2024, from this date on it will be impossible to benefit from the aid for 2020.
For more information consult our website or call our office, we will be happy to offer you the best possible help.
Telephone: +34 915 194 392 (4 lines)
email: info@ustaxconsultants.es
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