According to Nathan Farkas, CPA, CA, CPA(NY):
Another thing I noticed on this is that in each case where a client got the letter 4087, there was an ITIN application for a family member, be it a spouse or a child. In all my streamlined cases, over 75% of cases where the client applied for ITIN numbers for a family member, they received a letter 4087 saying that returns or FBARS were missing. In over 75% of cases where there was no ITIN application, the returns were assessed and the case resolved in a fairly quick manner.
How have others been dealing with this situation and does anyone have a similar results from the streamlined processes?