What Is the Streamlined Tax Amnesty Program for US Expats?

The Streamlined Tax Amnesty Program is a solution, accepted by the IRS, for US citizens and Green Card holders abroad who did not submit their obligatory US tax returns or foreign account disclosures. It enables expats to play catch-up on previous filings penalty-free if the failure to file was not due to willfulness.

This procedure is particularly worth it for Americans who didn't realize that they had continuing tax liability while abroad.

Who is Eligible to Use the Streamlined Filing Compliance Procedures?

You might be eligible if you:

• Are a US citizen or Green Card resident living abroad

• Didn't file US tax returns, FBARs (Foreign Bank Account Reports), or FATCA forms

• Did not willfully fail to file (you just didn't know)

• Have filed less than 3 years of tax returns and/or 6 years of FBARs

It's available to individuals who in good faith didn't know they needed to file and not those who attempted to conceal income or assets.

What Does the Amnesty Program Make You File?

The streamlined tax amnesty program requests:

• Three years of previous federal tax returns (Form 1040)

• Six years of FBARs (FinCEN Form 114) if foreign accounts were greater than US$10,000

• A signed Certification of Non-Willful Conduct (Form 14653)

• Payment in full of any taxes owed (if any)

You are exempted from all late filing, non-compliance, and FBAR penalties, as well as foreign asset reporting, if you qualify.

Do You Have to Pay Penalties Under the Streamlined Program?

No, you will not pay late-filing or FBAR penalties if your non-compliance was non-willful.

This makes the program so attractive to expats who've inadvertently fallen behind but wish to reinstate themselves in good standing without penalty.

How Is "Non-Willful" Behavior Defined?

The IRS defines "non-willful" as negligence, misunderstanding, or unawareness of the requirement to file.

If you truly didn't know about your US tax responsibilities abroad, you probably fit the bill. You must clarify this in a short written statement (Form 14653), but it's not a court proceeding, just an honest account.

Why Do So Many Expats Use the Amnesty Program?

Lots of Americans abroad simply didn't realize they still needed to:

• File US taxes even if they only earned foreign income

• Report foreign bank accounts and investments

• File foreign retirement account, trust, or company forms

The simplified amnesty program provides these individuals with a penalty-free, secure method of catching up and escaping long-term dangers.

Is the Streamlined Program Just for High-Income Earners?

No. The program is available to all expats, not just high-income earners. Even if you don't have a tax liability after using the Foreign Earned Income Exclusion or Foreign Tax Credit, you are still required to file.

Most expats end up owing no US tax but refusing to file still has consequences until you become compliant.

How Long Does the Process Take?

Preparation of a full streamlined filing package takes roughly 2 to 6 weeks, depending on how complicated your finances are. After filing, the IRS takes 4 to 8 months to process the filing.

The best news: you don't have to wait for an "approval." Once submitted, you're compliant unless the IRS reaches out otherwise.

What Happens After You File?

If all is correct and you've paid any tax due, your file is updated, and you'll be in compliance. Most expats never hear a word unless there's an issue with documentation or totals.

You can then submit future tax returns on the regular annual timetable (usually from overseas with an automatic 2-month extension).

Last Words: Don't Delay If You're Behind

If you're abroad and haven't filed US tax returns or reported your foreign bank accounts, the streamlined tax amnesty program provides a second chance, which is a rare opportunity. It allows you to correct the problem without penalty, provided your error was an honest mistake.

This initiative has already relieved thousands of US expats of their secrets without financial or legal agony. But there's no promise it'll remain an option forever. If you're in arrears, even by a few years, it's worth consulting a tax professional to sort things out before the IRS approaches you first.

FAQs

What is the streamlined tax amnesty program for US expats?

It's an IRS program that allows US citizens overseas to get up to date on past due tax returns and FBARs without penalties, provided the non-compliance wasn't willful.

How many years of tax do I have to file under the program?

You must file the most recent 3 years of tax returns and 6 years of FBARs.

Do I have to file if I didn't owe any US tax?

Yes. Although no tax may be due, you still need to file to maintain compliance and not face subsequent penalties.

Can I participate in the program if I've never filed tax before?

Yes, provided your failure to file was non-willful and you qualify on the other factors.

Is the Streamlined Program the same as a Voluntary Disclosure?

No. Voluntary disclosure is for willful non-compliance and usually involves penalties. The streamlined program is for honest errors.

Can Green Card holders use the program?

Yes. The streamlined amnesty program is available to U.S. citizens and lawful permanent residents.

Can I prepare my own or do I need to hire a tax pro?

You can prepare on your own, but since the forms require international income and FBARs, most expats prefer pros who are experienced with the process.