A Common IRS Streamlined Filing Mistake Fixed with Form 14708

A Common IRS Streamlined Filing Mistake Fixed with Form 14708

A Common IRS Streamlined Filing Mistake Fixed with Form 14708

The IRS Streamlined Filing Procedures are an international tax mechanism used by US taxpayers who are out of compliance for prior year reporting of foreign accounts, assets, and investments to get into compliance safely.  When submitting to the streamlined procedures, sometimes taxpayers and/or less experienced counsel tend to make some mistakes that are otherwise avoidable. Nevertheless, these mistakes are usually no big deal and can be resolved relatively easily—so please try to disregard any online fear-mongering nonsense by less experienced “self-purported expert attorneys” trying to make you feel that any mistake you made is fatal; it is not. One common streamlined filing mistake we see often is the submission included a Canadian RRSP or similar Canadian pension as part of the penalty computation. In fact, the RRSP for eligible taxpayers is excluded from the penalty complication. And, since many taxpayers who have Canadian assets also have RRSP accounts – it is a welcome exclusion. If you or your representative previously submitted to the streamlined procedures and inadvertently included a Canadian pension account as part of the penalty complication, do not worry; it is so common that the IRS has a specific form for you in order to go back and resolve the issue, Form 14708.

IRS Form 14708 Breakdown (Streamlined Domestic Penalty Reconsideration Request Related to Canadian Retirement Plans)

      • Name of Tapayer

      • TIN

      • Mailing Address

      • Telephone Number

        • Note: If spouses previously submitted a joint certification, both spouses must sign this form. If this reconsideration request is a joint request, the statements will be considered made on behalf of both spouses, even though singular pronouns are used.

        • In my original Form 14654, Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures, I included the value of my interest in one or more Canadian retirement plans described in Rev. Proc. 2014-55 (“Canadian retirement plans”) in the Highest Account Balance/Asset Value and paid the 5% miscellaneous offshore penalty on my Canadian retirement plans. I certify that I am an “eligible individual” as defined in section 4.01 of Rev. Prov. 2014-55.

        • I have reviewed my original Form 14654, Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures, and the documents I relied upon in preparing my certification.

        • I have recomputed the Highest Account Balance/Asset Value and the Miscellaneous Offshore Penalty for my 3-year covered tax return period and 6-year covered FBAR period by removing the value of my Canadian retirement plans as follows:

          • Line 1. Previously Reported Miscellaneous Offshore Penalty

          • Line 2. Revised Miscellaneous Offshore Penalty

          • Line 3. Requested Refund of Miscellaneous Offshore Penalty (line 1 minus line 2) 3.

    • If your revised Highest Account Balance/Asset Value is for a year different from the Highest Account Balance/Asset Value in your original certification, please note the change below:

          • Original Highest Account Balance/Asset Value year

          • Revised Highest Account Balance/Asset Value year

    • Please identify your Canadian retirement plans below. If you need more space, you may attach additional pages to this form

          • Name of Financial Institution

          • Address of Financial Institution

          • Account Number

          • Year -End Balance For Year With Highest Account Balance (State In U.S. Dollars)

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