The IRS Streamlined Tax Amnesty Progam
Safely catch up on your US taxes with no fines or penalties.
Published on September 18, 2018
Updated on February 18, 2025
Written by: Darryl Albuquerque
Streamlined Tax Amnesty Program Tax Specialists
Darryl Albuquerque
Enrolled Agent
Senior Tax Manager
21 years of Expat Tax Experience
30-minutes US$347.
Mary Ann Acoba
Enrolled Agent, CPA
Senior Tax Manager
14 years of Expat Tax Experience
30-minutes US$347.
Darryl Albuquerque – our Streamlined Offshore Specialist
Even if you haven’t filed taxes for 20+ years, you can catch up by filing the last 3 years of your tax returns and 6 years of FBARs. Once you do this, your IRS record will be cleared and you can continue filing.
The IRS has created this program, and we encourage many people to take advantage of it while it lasts. We cannot say with any degree of certainty when the IRS may close it down. So, if you happen to be in this situation, we urge you to file under these procedures as soon as you can.
Do I qualify for the Streamlined Offshore Procedure?
According to the IRS, you only need to file the most recent three years of tax returns, even if you haven’t filed for longer, and these returns must be past their due dates. So, currently, the years that are open for filing under Streamlined are 2022, 2023, and 2024.
In addition, if you have a foreign bank account in the country you reside in, you most likely also have unreported foreign income there as well. You’re gonna need to file a Foreign Bank Account Report (FBAR) for the last six years.
Lastly, and probably the most important part to qualify, your non-compliance from all these years must be “non-willful” or that you did not intentionally evade taxes. So, you need to submit a certificate in which you declare to the IRS why you did not file and, more critically, state that your behavior in not filing these past few years was due to non-willful conduct.
The purpose and benefits of the Streamlined Offshore Procedure
The main reason for the implementation of the streamlined tax amnesty program is to help US taxpayers who unintentionally failed to report foreign income and accounts to become compliant without facing harsh penalties. Hefty fees and interests await those who fail to file and pay taxes because it is an obligation of a US citizen, and it does not go away even if they live abroad.
It is specifically designed for those whose failure to file was non-willful, meaning it was due to a lack of awareness or misunderstanding of tax obligations. It offers eligible taxpayers huge advantages, such as penalty relief and simplified compliance.
The process and timeline
The streamlined procedure is a simplified way for you to become IRS-compliant while avoiding severe penalties. Here’s how our process works:
What is the required documentation?
Here are the common documentation needed to participate in the streamlined tax amnesty program:
- Delinquent US tax returns for the last 3 years
- Foreign Bank Account Reports (FBARs) for the last 6 years
- Non-willful certification statement
- Foreign Financial Statements (if needed)
- Tax payment for past-due returns (including any interest)
What is an FBAR?
The FBAR is, technically, the Form 114 issued by the Financial Crimes Enforcement Network (or FINCen as we call it). It’s a report of a foreign bank, simply put. There is no tax to pay on it. It is a separate filing from your tax return,
You report bank accounts outside the US if the maximum value or the highest values, for any reason, in a year is the equivalent of US$10,000 or more. If you have more than one account, you look at the highest values in aggregate. So, if you have US$5,000 in one account and US$5,000 in the other account, which were the highest values in the year, put together, they add up to US$10,000, so you need to report both accounts. Whenever you have more than one account, you usually need to report them all.
Why act now?
The IRS can end the Streamlined program at any time. If that happens, future compliance could result in significant penalties and audits.
Take the first step in the Streamlined Amnesty Program. Connect with us today.
Special considerations for US expats
Here are key considerations for US expats:
- No IRS penalties: The biggest advantage for expats is that there are no penalties for late tax filings or unreported foreign accounts.
- IRS residency test: To qualify for the procedure, you must have lived outside the US for at least 330 full days in one of the last three tax years or not maintain a primary residence in the US.
- FBAR filings: For foreign account/s that hold more than US$10,000 at the end of the calendar year.
- FATCA (Form 8938): For foreign financial assets exceeding US$200,000 (single) or US$400,000 (joint) abroad.
- Tax credits & exclusions: Tax benefits offered to US expats like the Foreign Tax Credit (FTC), Foreign Earned Income Exclusion (FEIE), and Foreign Housing Exclusion (FHE).
Navigating Streamlined Filing as an expat can be complex, but we can help simplify the process. Book your free consultation now to determine your eligibility and potential tax savings.
What is a ‘Non-Willful’ conduct?
The IRS defines non-willful conduct as a failure to report income, file tax returns, or disclose foreign accounts due to negligence, misunderstanding, or unintentional oversight. There should be absolutely no signs of tax evasion.
In the context of the streamlined tax amnesty program, this is very significant in determining your eligibility for the procedure.
How to prove Non-Willfulness?
You need to obtain and submit a Non-Willful Certification (Form 14653 or 14654). This certification should explain your situation, such as:
- Your background and understanding of tax laws.
- Why you did not report foreign income/accounts.
- How you learned about the filing requirements.
- Steps you are now taking to become compliant.
Be sure to have this in a clear and concise manner as the IRS reviews these statements with care.
Penalties and penalty abatement
Here are some potential penalties for non-compliance if a taxpayer does not use the Streamlined Procedure:
|
Scenario |
Penalties without Streamlined |
Penalties under Streamlined |
|
Foreign Offshore (SFOP) |
Up to 50% of account balance + criminal risk |
No penalties (0%) |
|
Domestic Offshore (SDOP) |
US$10,000 per account per year + 25% tax penalties |
5% penalty on the highest foreign asset balance |
|
FBAR Penalties |
US$10,000+ per account per year |
Waived under Streamlined |
|
FATCA Penalties |
US$10,000+ per year |
Waived under Streamlined |
There is an option for penalty abatement under the streamlined tax amnesty program. The procedure automatically abates (removes) penalties for foreign-based taxpayers (SFOP) and reduces penalties for domestic taxpayers (SDOP).
Cost and pricing
What’s included in our streamlined procedure?
We will help you kickstart the procedure by preparing and filing your last three overdue US tax returns.
We will prepare FBARs for the past six years to ensure your compliance and ensure that no penalties have been incurred for reporting requirements for your foreign bank accounts. This includes details such as account numbers, joint ownership status, and highest balances during the year.
We will assist you in providing a comprehensive written explanation of why you haven’t filed US tax returns.
You will have a personal client manager exclusive to only you for proper guidance in the procedure. They will aid you in gathering necessary documents, answering your concerns, and keeping you updated. They will also assist with the final submission of your tax returns.
If the IRS audits you, we will provide full support. We will also assist if you receive any notices from the IRS.
Each tax return undergoes a thorough review by at least three US tax professionals before being finalized, ensuring accuracy and compliance.
Every tax return is signed by an IRS-licensed tax professional (EA or CPA). Their name and IRS license number will appear on your return, providing transparency and credibility.
Ready to begin the simplified Streamlined Tax Amnesty process?
Connect with one of our Streamlined specialists* to get started.
*30-minutes US$347
*30-minutes US$347
Retroactive relief
The IRS will only require you to file the most recent three overdue tax returns. Older unfiled returns will not need to be submitted unless the IRS has contacted you regarding a prior tax year or received an income statement, such as a W-2, from one of those years.
Streamlined procedure for married couples
Good news for married couples! You can file under the streamlined procedure together. Just be sure to have the most basic requirement: a valid Social Security Number or ITIN!
If you’re married filing jointly, we can arrange a joint streamlined amnesty filing with only one streamlined certification. For couples under the status ‘married filing separately,’ you must each submit your own streamlined filing, including individual tax returns, FBARs (if required), and separate streamlined certifications.
Standard pricing will still apply whether one or two people are on the tax returns.
Streamlined procedure for individuals with businesses abroad
If you have a business abroad, don’t worry! You can also file using the streamlined procedure. It’s a little more complicated because you have additional reporting requirements like filing Form 5471 to report your company details, shareholder information, and financial situation.
But we have a specialized team to help you in situations like this. You can be pardoned from higher penalties if you file under the streamlined procedure, saving you time and a lot of bucks.
How does the streamlined tax amnesty procedure compare to other IRS programs?
The streamlined tax amnesty procedure stands out from the rest of the IRS programs because it is specifically designed to help unintentionally non-compliant taxpayers become compliant.
This program understands that individuals often forget or are unaware of their tax responsibilities, especially when they’re outside the US. It offers penalty relief, simplicity, and accessibility.
It’s important to note that the streamlined procedures can only be used independently. You are not allowed to enter other IRS programs, so it is crucial to check if this program aligns with your situation.
You can book a free consultation now to see if this is the best fit for you.
