If you’re a U.S. citizen or lawful permanent resident living abroad and you’ve just discovered you were supposed to file U.S. tax returns every year, you’re not alone. The truth is, thousands of U.S. expats find themselves in this exact situation—unaware of their filing obligations until years later. The good news? There’s a penalty-free solution.
It’s called the Streamlined Filing Compliance Procedures, or simply, the streamlined procedures.
We’ve helped thousands of U.S. expats become compliant under this program—with no penalties—by showing the IRS their failure to file was non willful. This approach doesn’t rely on fear, but on education, transparency, and experience.
What Are the Streamlined Procedures?
The streamlined procedure is an IRS amnesty program that allows non-willful taxpayers—those whose noncompliance was due to negligence, inadvertence, or mistake—to catch up on their U.S. tax returns and foreign bank account reporting without facing failure to file penalties, FBAR penalties, or worse.
It’s part of the broader voluntary disclosure practice, introduced to help taxpayers correct non compliance related to foreign financial assets, foreign income, and tax filings.
Who Qualifies for the Streamlined Procedures?
To qualify for the streamlined procedures, you must meet the following criteria:
- Your failure to file was non willful
- You have not been contacted by the IRS about the issue
- You are either a U.S. resident or a non-resident (based on the substantial presence test)
- You’re willing to file accurate and complete tax returns and FBARs
There are two versions of the program:
1. Streamlined Foreign Offshore Procedures (SFOP)
For U.S. taxpayers who live abroad and meet the non-residency requirement.
✅ Penalty-free
✅ Must file 3 years of tax returns and 6 years of FBARs (FinCEN Form 114)
2. Streamlined Domestic Offshore Procedures (SDOP)
For those who reside in the U.S., but have foreign financial accounts they failed to report.
✅ Subject to a 5% offshore penalty on unreported foreign assets
Whether you fall under streamlined foreign offshore procedures or streamlined domestic offshore procedures, the key is proving your non willful conduct.
What Is Required Under the Streamlined Filing Procedures?
Here’s what you’ll need to submit:
- Three delinquent tax returns (original or amended or delinquent returns)
- Six years of FBARs (FinCEN Form 114)
- Certification of non-willfulness (Form 14653 for SFOP or Form 14654 for SDOP)
- Payment of any unpaid taxes and interest due
- Information on previously filed and foreign financial assets that were omitted
These streamlined filing procedures focus on correcting past mistakes without punitive action—as long as you’re honest and complete.
What Counts as Non Willful Conduct?
The IRS defines non willful conduct as a failure that happened due to a good faith misunderstanding of the law, negligence, or inadvertence. That means you didn’t intentionally hide income or fail to file.
Examples of non willful situations:
- You didn’t know that having foreign accounts triggered filing requirements
- You thought your foreign income was taxed only in the foreign country
- You relied on inaccurate advice from a tax preparer unfamiliar with expat tax
What Are the Benefits of the Streamlined Procedure?
The streamlined procedure exists to help, not punish. Key benefits include:
- No penalties for streamlined foreign offshore procedures
- Avoidance of failure to pay penalties, accuracy-related penalties, and potential criminal charges
- Opportunity to become compliant and move forward with peace of mind
For many, it’s a fresh start that restores confidence and simplifies the tax filing process going forward.
Why the IRS Offers Penalty Relief for Expats
The IRS is aware that U.S. expats often aren’t told about their tax obligations, especially if they’ve lived abroad most of their lives. That’s why they offer streamlined filing options: to help taxpayers become compliant without facing penalties for unintentional mistakes.
At 1040 Abroad, we’ve helped thousands of expats get back on track with the IRS—without any penalties. If you’re in a similar situation, the streamlined foreign offshore procedures may be the right solution for you.
How Many Years Do You File Under Streamlined Filing?
Under streamlined filing compliance procedures, you’ll need to:
- File tax returns for the last 3 years
- File FBARs for the last 6 years
- Pay any unpaid taxes and interest from those years
Even if you earned foreign income, the foreign earned income exclusion and foreign tax credit can often reduce or eliminate your tax liability..
What Happens If I Ignore My Filing Obligations?
While the IRS is reasonable toward non willful taxpayers, ignoring your filing requirements can result in:
- Significant penalties for failure to file
- Increased tax liability
- Loss of eligibility for streamlined filing procedures
- Difficulty renouncing U.S. citizenship or applying for U.S. benefits
- Possible exposure to the full voluntary disclosure practice with more severe consequences
If you’ve never been contacted by the IRS and your non compliance was unintentional, now is the best time to use the streamlined filing option.
What We Do (and Why It Works)
At 1040 Abroad, we specialize in expat tax and international tax issues. We’ve guided thousands through the streamlined procedure, from the foreign earned income exclusion to FBAR compliance to complex foreign financial accounts.
Our process is built on:
✅ Understanding your full situation
✅ Ensuring you qualify for the streamlined
✅ Completing all necessary tax returns and foreign bank account reports
✅ Preparing a strong, accurate non willful certification
✅ Communicating with the IRS, so you don’t have to
We don’t scare people into action. We give them clarity, peace of mind, and real solutions—without penalties.
Why You Shouldn’t Wait
If you’re behind on your U.S. tax return filings, haven’t reported foreign financial assets, or just found out you should have been filing, don’t panic. The IRS streamlined filing compliance procedures are here to help—and we are too.
Whether you’re dealing with foreign eanred income, a passive foreign investment company, or just need to catch up on past due tax returns, we can help you become fully compliant with no penalties.
Start your journey to stress-free compliance today. We’ll help you use the streamlined procedure to fix the past and secure your future.
