The IRS recently released answers to frequently asked questions
(which you may find by clicking here) regarding its new Streamlined filing
compliance procedures ("Streamlined") for US persons who
reside outside of the US and are not current on their tax and
filing obligations. The FAQs address six questions, three of which
resolve important issues:
First, the FAQs examine the $1,500 tax
liability threshold that is used to determine whether a taxpayer is
eligible for Streamlined. Eligibility is determined by examining a
taxpayer's compliance risk, which is generally measured by the
complexity of the returns. The FAQs state that if the taxpayer owes
less than $1,500 in any of the three submitted years he will
not necessarily qualify as "low risk" and,
conversely, if the taxpayer owes more than $1,500 in any of those
years he will not necessarily be considered "high
risk."
