The Streamlined Filing Compliance Procedures were implemented for U.S. citizens who are living abroad since January 1, 2009 and failed to file income tax returns and reports on Foreign Banks and Financial Accounts.
This procedure was implemented for taxpayers that are considered as low compliance risk.
Those taxpayers will not require to pay penalties and the IRS will not pursue any follow up actions.
Taxpayers that present higher risk are not eligible for the streamlined processing procedure.

The IRS will determine the level of compliance risk based on the information provided on the filed returns and base on a questionnaire that is submitted as part of the tax return.
A taxpayer will most likely be considered as a low risk if the return shows less than $1,500 in tax due in each of the years.

In order to follow the streamline procedure the taxpayer must:
- Submit a complete and accurate tax return for the last three years which tax return is due.
- Write the words Streamlined Foreign Offshore preferable in red ink at the top of the first page of each years return.
- Submit payment of all tax due and interest due.
- File FinCen144 reports for the last 6 years.

Generally, amended return will not be accepted in this program.

Article by www.ustaxstar.com.