Streamlined Filing Procedures for Expats

The Streamlined Filing Compliance Procedures are an IRS program that lets expats catch up on unfiled tax returns and FBARs without facing the full penalty exposure of a normal late filing. To qualify for the Streamlined Foreign Offshore Procedures, you must not currently be under IRS examination, and your failure to file must have been non-willful — meaning you simply didn't know you were required to file, not that you were deliberately hiding income. The process requires filing the last three years of federal tax returns and the last six years of FBARs, along with a signed certification explaining why your non-compliance was non-willful. There is no penalty for eligible expats using the foreign offshore version of the program, which is a significant benefit compared to the domestic version, which carries a 5% miscellaneous offshore penalty. If you've been living abroad and didn't know you still had to file US taxes, the Streamlined Procedures are worth discussing with a tax professional.