July 29, 2025
If you’ve missed reporting a foreign bank account, income, or gift to the IRS, don’t panic; there’s a way to fix it. The IRS created the Streamlined Domestic Offshore Procedures (SDOP) for U.S. residents who unintentionally failed to comply with offshore reporting rules.
Whether you’re a small business owner in San Diego, a U.S. expat, or managing a foreign-owned company in California, this program could be the clean-slate solution you need.
What Can You Fix Through SDOP?
The program allows you to catch up on essential international tax filings:
- Delinquent FBARs (FinCEN Form 114) for the past 6 years
- Amended tax returns (Form 1040-X) for the past 3 years
- Late international forms such as Forms 8938, 5471, 3520, and 8621
✅ Are You Eligible?
You qualify for SDOP if:
- You’re a U.S. citizen or green card holder residing in the U.S.
- You’ve timely filed tax returns for the past 3 years (original or extensions)
- Your failure to report was non-willful—due to negligence, not intent
💡 Key Benefits
- Replace multiple penalties with a single 5% penalty on the highest aggregate foreign account balances over the covered years
- Avoid harsh FBAR penalties (up to $10,000 per account, per year)
- Avoid criminal exposure for unreported offshore income
🛠 How It Works
- Amend 3 years of tax returns to include foreign income and forms
- File up to 6 years of delinquent FBARs
- Submit Form 14654, certifying non-willfulness
- Pay all taxes, interest, and the 5% penalty
Local Expertise Matters
At USIBTS in Carlsbad, we specialize in helping San Diego County taxpayers navigate international compliance. Our team makes the complex simple, helping you avoid unnecessary penalties.
Contact us for a consultation.
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