You have a client Mr and Mrs Joe Smith have bank accounts in Malaysia. In 2011 when they moved from Malaysia to USA, they had balance of 120,000 in a local bank in Malaysia. They filed their tax returns from 2012 to 2014 and did not report interest on this savings account. Interest was 3% annually. He is employed by local hospital at an annual salary of $85,000. He used standard deductions for all these years. He has two dependent children under the age of 12. But the taxpayers never reported existence of foreign bank accounts to IRS. He received a w9 on March 3, 2015 from a bank in Malaysia and requested him to complete and send back to the bank. The taxpayer needs your help in resolving this issue. 1. Did these people qualify for streamline procedure? 2. If yes, then you need to calculate amended tax return showing interest income. File all required forms. 3. If no, calculate penalties and amended return for 2012 1040 and 1040X 4. Letter to client with the same format of the Penalty Abatement Letter. Search "Facts" needed to defend your case. 5. Certification statement needs to be submitted with form