Find out more about solutions for late filers
The IRS Streamlined Procedures
Our service includes the preparation of 3 previous tax returns, 6 previous FBAR forms, and guidance and review of your non-willful statement. Should you require special information reporting, such as Form 8938 (FATCA), Form 5471 (ownership in foreign corporations), Form 3520 (foreign trusts) and the like, additional fees may apply.
For more information on the IRS Streamlined Procedures, including detailed FAQs, please visit our page dedicated to this topic: IRS Streamlined Procedures
Other IRS Amnesty Programs
These options include:
- Voluntary disclosure program
(for taxpayers who are concerned that their delinquency might be viewed by the IRS as willful and who seek to avoid potential criminal penalties) - Relief procedures for certain former citizens
(for accidental Americans who have renounced or plan to renounce their US citizenship and want closure with their IRS filing obligations)
FBAR Amnesty Program
For U.S. expats who are delinquent only with respect to FBAR reporting, the Delinquent FBAR Submission Procedures (DFSP) offers an easy process for submitting late FBARs without being subject to penalties.
In order to be eligible for the program, you need to meet the following criteria:
- you are not required to submit missing or amended tax returns (because all income was properly reported on your original returns);
- you are not under a civil examination or a criminal investigation by the IRS; and
- you have not been contacted by the IRS regarding the delinquent FBARs.
Table Summarizing IRS Amnesty Programs
|
|
Circumstances When Program Is Recommended |
Eligibility |
Submissions to the IRS |
Results / Penalties |
|
Streamlined |
U.S. non-resident whose delinquency is due to non-willful conduct |
- Non-resident for U.S. tax purposes
- Delinquency due to non-willful conduct
|
- 3 years of tax returns and information returns
- 6 years of FBARs
- Non-willful certification
|
- No penalties
- Payment of tax due with interest
- No final agreement
|
|
Streamlined (Domestic) |
U.S. resident whose delinquency is due to non-willful conduct |
- U.S. tax resident
- Non-willful conduct
- Taxpayer has not failed to file required U.S. income tax return in any of the three most recent tax years.
|
- 3 years of tax returns and information returns
- 6 years of FBARs
- Non-willful certification
|
- 5% offshore penalty
- Payment of tax due with interest
- No final agreement
|
|
Relief for Certain Former Citizens |
Individual whose delinquency is due to non-willful conduct and who has renounced or plans to renounce US citizenship |
- Non-willful conduct
- Not subject to U.S. exit tax
- Total tax liability of $25,000 or less for past five tax years
|
Tax returns for the year of renunciation and the previous 5 years
|
- No penalties
- No exit tax
- No tax or interest liability
- IRS notice will be sent if submission is accepted
|
|
Voluntary Disclosure Program |
Taxpayer who is delinquent on domestic or offshore items with potential exposure to criminal liability and/or substantial civil penalties due to willful conduct |
No specific requirements |
- 6 years of tax returns and information returns
- 6 years of FBARs
|
- 75% civil fraud penalty applies to tax year with highest tax liability
- Willful FBAR Penalties apply
- Penalties may be reduced
|
|
Delinquent FBAR Submission Procedures |
Taxpayer who is delinquent only with respect to FBAR filings |
- Income from accounts reported on original return
- Not under IRS examination or investigation
- No previous contact by IRS
|
- Submission of late FBAR(s)
- Brief explanation for late filing
|
- No penalties
- No final agreement
|
