What are the advantages of the Streamlined program?
There are two main advantages for this program; the limited number of filings required and the penalty protection.
In most cases, if you qualify you will be required to file three years of late income tax returns or amended returns to correct errors, along with six years of late Foreign Bank Account Reports. If you’ve been out of the US for longer than three years, this can result in a significant reduction in your filing obligations and therefore in both the cost and hassle of getting up to date. If you own a non-US business, you may be required to go back to 2017 in certain situations due to rules in place for that year.
If you qualify, you will not be subject to failure to file or failure to pay penalties, accuracy related penalties, information return penalties or FBAR penalties. Considering the civil penalties for the latter can be up to $10,000 per failure to file, that is clearly of great benefit. Any tax due would need to be settled and late payment interest would also remain payable.