What are the IRS Tax amnesty programs for US expats?
If you haven’t caught up with your US expat taxes for a while, IRS Tax amnesty program is the legal and safe way to get back on track. Many taxpayers who fell behind their taxes are afraid to start the process. Mostly due to various misconceptions about the tax amnesty programs. Keep on reading to find out what the facts and myths are.
The U.S. tops the list of countries with the highest cost of tax avoidance. It stands at nearly $200 billion every year. Yes, the numbers are huge! No wonder why the IRS finds new ways to track the wealth of US citizens who live and work abroad. As you know, there are FBAR, FATCA, and heavy penalties. But at the same time, the IRS introduced amnesty programs! They are a reliable yet easy way to catch up with your US expat taxes.
Do you know what are the available deductions for Americans living abroad? Check out our guide here
US expats who want to catch up with their taxes: where do you start?
You may have moved abroad decades ago but have never filed your US expat tax return as you have never been aware of US tax obligations. It happens more often than you think. There are thousands of people who are in the same boat like you. In this case, your failure to file was due to “negligence, inadvertence or mistake”. This makes your conduct to be non-wilful and allows you to qualify for the Streamlined Foreign Offshore Procedures. Yet there are many ways to interpret what a non-wilful conduct is. As well as who can take advantage of this program. However, the rule of thumb is you haven’t intentionally tried to avoid paying taxes. And the IRS hasn’t started auditing you after sending you letters of notifications few times in a row.
Filing late taxes as a US expat is an uncomplicated and painless step that you need to take if you want to live worry-free life and not being scared of the IRS hunting you down. As long as you come forward voluntarily, the IRS will already treat you better! They are way more strict with those Americans who were caught by them.
What are the myths about filing late taxes as U.S. citizens abroad?
We receive dozens of questions about the IRS amnesty programs every day. We want to clarify a few most popular myths that people have! And we recommend seeking a professional advice when it comes to filing your late taxes with Streamlined procedures.
Myth #1: It is time consuming, difficult and expensive process to get into tax compliance with the IRS Streamlined Procedures.
Contrary to popular belief that the IRS threatens everyone, who failed to file and pay their taxes, to take away all their assets or property, the tax amnesty program makes the process of catching up with your US expat taxes easy and hassle-free. There are more than 70,000 people who participated in the Streamlined Procedures since it’s introduction in 2012 and then a revision in 2014. Assuming you qualify for the Streamlined Offshore Procedures, all you have to do is to file prior 3 years of tax returns and 6 years of FBARs. And don’t let the 6 years of FBARs scare you, it’s a simple process as described here.
Myth #2: You will face hefty penalties when disclosing your tax history to the IRS
You can eliminate penalties which may be imposed on you for failing to file your federal tax return or FBAR. Even though every taxpayer’s situation is different, generally the IRS tax amnesty program allows most of the delinquent Americans abroad to come clean without fines. It’s important to remember that every U.S. person wishing to take advantage of the Streamlined Procedures and suffer no penalties has to meet following requirements:
- You need to meet a non-residency requirement, which states that you are a U.S. citizen, a Green Card holder or other U.S. person for tax purposes, who didn’t reside in the U.S. for the most recent 3 years for which the U.S. tax return due date has passed.
- Your failure to report all income was a result of the non-wilful conduct.
You need to remember that another amnesty program as Offshore Voluntary Disclosure Program (OVDP) has civil and criminal penalties installed in the program by default because the participating taxpayers failed to report and pay taxes of their foreign financial assets due to intentional causes of tax evasion. Though there still may be some reduced penalty rates (for example, 27,5% penalty of the top value of your offshore assets) it’s hard to predict how the IRS will treat every individual who takes part in OVDP as everyone’s foreign financial assets and scope of tax avoidance varies from case to case.
Myth #3: You can hold off to get into tax compliance as long as you can because there is no expiry date for the IRS tax amnesty program
Now there is no official announcement on whether the tax amnesty programs will be there for a certain period of time. We recommend that you get back on track with the IRS sooner than later. The officials recently made it clear that the program will end when it feels it’s hard to believe that a delinquent taxpayer, who can take advantage of the Streamlined Procedures, has decided to not take part in it due to not being aware of this amnesty program. And it simply means that you now have a wilful cause of failing to file and pay taxes.
Taking an advantage of the IRS Amnesty program as a delinquent American taxpayer abroad
The IRS offers 2 main amnesty programs, such as Streamlined Procedures and OVDP. Of course, you can start the process by yourself if your case isn’t too complicated. However, we recommend everyone to seek a professional help. A U.S. expat tax expert can help to assess your individual tax case.
It’s important to remember that OVDP is an amnesty program for those who had willful and criminal conducts. They were hiding their foreign financial assets and will be facing severe financial penalties. Even the imprisonment may come into the picture. We do not recommend you to start compliance process by yourself, especially if you may fall into this category.
At 1040 Abroad, we have tax experts, who specialize in US expat taxes and help you and your fellow US expats to live a worry-free life while we take care of your taxes.
We are a tax firm, which helps hundreds of US expats abroad. They deal with different tax cases and consequences each taxpayer may face. Get started today with us and fulfill your tax obligations in a legal, time and money saving manner.
Can you send me information as to the services you provide, how long you have been in business and the costs of your various services. I have been in litigation here and am possibly expecting a settlement in the coming year.Thank you.
Hello Sheldon,
I sent you an email.
Thank you for your enquiry.
Happy Holidays!
I have been living abroad for 30 years and haven’t filed taxes. I never exceed the allowable overseas tax exemption and always payed my social security. I did have one year (for 2003) that they tried to attach my wages for taxes from an audit, I filled out the form and returned it and have never heard anything back. What do I need to get back on track and how difficult will it be. I am in the process of filing Social Security disability and trying to relocate back home.
Hi Jonathan,
I just sent you a reminder email to prepare a Streamlined package.
All the best,
Olivier Wagner, CPA
I’m a US Citizen and have been living abroad for almost two decades. As I filed taxes in Europe all these years I never thought I needed to file US taxes as well.
I want to figure out how I can catch up on all the years of not filing and be in the clear with the IRS.
Pls advise.
Hello Albasari!
I will send you an email shortly. Please, check your inbox!
Thank you!
Best regards,
Olivier Wagner.
I am a U.S. Citizen and have been living abroad for almost two decades. I have filed taxes in Australia for all these years, and was unaware that I needed to file in the U.S. as well.
Please help me navigate how I can catch up with the filing in the U.S. and be compliant with my obligations to the IRS.
Hello Holly,
Thank you for reaching out. Given you weren’t aware of your U.S. tax obligations as an expat living in Australia (meaning you weren’t tax compliant due to non-wilful violation) you qualify to catch up with the filing in the U.S. using the Streamlined Procedures. To do so, you will only need to file 3 last years of tax returns and 6 years of FBAR.
If you need further assistance, contact us at 1040abroad.com/contact and we will start the process.
Looking forward to hearing from you,
Olivier
Hello, I have been filing the US taxes (state and federal) for last 10 years and FBAR (after it started) since leaving US. However, I was not aware that I had to file information about mutual funds and ESOP income as part of this. What would I need to do now to catch up?
Hi
I have a friend that is a US ex pat and been living overseas here in Australia for 4 years and not aware until recently They need to file US returns. They have filed domestically every year here in Australia. Another problem is They found they don’t qualify for US streamline as they traveled to the USA more than 35 days in 2015 and 2016. They have had draft US tax returns prepared and owe no tax after tax credits are applied. As they do not appears to be able to file under Streamline due to the US travel days, How should they proceed?
Hello TJ,
We responded you via email.
Thank you.
Hello
I am american living abroad since 2001 and have not filed any income tax return for all those year because I did not know that l should.
What do I have to do to get into the amnesty program and how much do you charge for it.
Hi Rsshid,
We responded to you via email.
Thank you.
I am a US Citizen that has lived in Europe (Holland/France) since 1976 when I came over to study. I cannot remember the last time I filled a 1040 since I haven’t worked in the US and my ‘survival’ income earned in Europe has been hovering around poverty level ever since. I did not know about the requirement to file and haven’t received any reminders from the IRS as far back as I can remember. How do I get back on track since I need the TIN for my current fiscal status in France as a US citizen?
Hi Richard,
We responded to you via email.
Thank you.
Hi, I have been living in Australian for 39 years (I moved here when I was 14 and have only been to the US for holidays since). I have dual Australian and US citizenship. I was not aware that I was required to lodge a US tax return. In fact, the US Consulate in Sydney had a tax person offering advice many years ago and I was told that because of my income level and the reciprocal agreement between Australia and the US there was no need to lodge a return. I have now spoken with a US tax agent based in Sydney who quoted upwards of $10K just to become compliant and that was assuming “no penalties and charges that might require an attorney”. Please tell me that it is not this expensive or complicated. I believed I was doing the right thing and have always kept my tax in Australia up to date.
Hi Wendy,
We responded to you via email.
Thank you.
Hi, I have been living overseas for 38 years and have never filed an income tax return.. I’ve never had any earned income. I’ve been supported by my non-resident alien spouse. We have separated but he continues to support me. Do I need to file a tax return?
Hi Mia,
We responded to you via email.
Thank you.
Hello
Do you provide assistance with filing under the streamlined programme? If so, how much do you charge? I understand that one needs 3 years of tax returns and 6 years of financial documentation (FBARs). Is it possible that one could do this on their own? Mine is very straightforward as I have no ties in the US and all my income and life is in the UK. If you could send me some information I’d be grateful.
thanks.
Annette
Hello Annette,
We replied to you via email. Check your inbox. Thank you!
Hi,
Very similar case and curious as to whether I can manage this on my own (money is tight right now and the $1000+ fees I have been quoted by several advisers is a bit outside my reach right now). I have been researching the submission requirements and it seems straightforward enough. Though I know their may be pitfalls I am not aware of as a lamen, so hesitant to go it alone. Is there some option for me to prepare the forms & documentation myself and just have someone screen them for me before I file?
Hi John,
I replied to you via email. Please, check your inbox.
Thank you!
Hi, I have been living in AU for 15 years and am now a citizen. I have only worked (very casually) in the last few years. I was unaware that I needed to file with the IRS. I recently received a notice from our bank saying that I needed to submit my SS number, as they need to report it to the ATO, who will then report to the IRS. I am wanting to take advantage of the amnesty. Also, we have decent savings and are concerned as to what it may mean once I give my S number to the bank.
Thank you for any help
Leah
Hi Leah,
I replied to you via email. Please, check your inbox!
Thanks.
I haven’t received any emails
Hello, again Leah,
Apologies that you didn’t receive our previous email, we moved mail servers and it possibly didn’t go through.
We sent another one to you.
Thanks,
Olivier.
hey Leah,
I am in the same situation as you. I have been abroad for 20 years without going back to the u.s. all that time. I didn’t know about the filing requirement and I also have decent savings saved up now. I am going to do a streamlined procedure.
I need help. I’ve filed taxes in Australia and the US partially but greatly misunderstood all that was required of my filing obligations.
I need help. I’ve filed taxes in Australia and the US partially but greatly misunderstood all that was required of my filing obligations. I need to catch up as well
Hi Alex,
We replied to you via email. Please, check your inbox.
Thanks.
I’ve been living in Australia for 9 years, slightly complicated income as I’ve been a real estate sales agent and carer receiving a pension the whole time. Can you get me a quote. The cheapest I’ve had is about $1000.00 and that’s just a lot of money right now.
Hi Angela,
We replied to you via email. Please, check your inbox.
Thanks.
Hi,
I would love some more information. My husband is a dual American citizen and he hasn’t lived in America since he was a small child. We believe he may have been de-registered when he emigrated, but we’re not quite sure. His passport hasn’t been updated since that very old child passport and we’re curious if he has any tax obligations should he ever wish to renew his US passport and return.
Thanks
Hi Franzi H,
We replied to you via email. Please, check your inbox.
Thanks.
Hello, I have lived in Australia for 10 years and turns out I am another sucker who had no idea that I needed to file taxes in America as I had been filing them here in Australia because the tax papers here say; ‘resident for tax purposes’. I had no idea you have to file in two countries for earning income in one, and give bank account details and information to America while living on the other side of the planet.
Hi Andrew,
Thanks for contacting us.
We replied to you via email. Please, check your inbox.
Thanks,
Olivier.
Never have I ever….I got married at age 22 and have been living in Australia for the past 26 years as a dual citizen. At no point was I aware I was supposed to file a tax return in US each year. I have never received ANY correspondence from the IRS or other entity. I have lived, worked and paid taxes each year in Australia and only returned to USA to visit family members. I only became aware of my obligation today when my bank requested tax residency information as part of AEOI. I see from your information I will need to submit last 3 years tax returns and 6 years FBARs. Can you please provide information.
Hi Laura,
We replied to you via email.
Please, check your inbox.
All the best,
Olivier.
Hello,
My wife is a dual British American citizen. She moved from the U.S.A at 6 months old and has lived in the UK since that time. She has only been to the U.S.A for holidays. she has an up to date U.S.A passport and has never had a letter from the IRS. We have only just found out she is meant to submit tax returns as her company has asked her about it due to her joining the work share scheme.
any help and advice would be appreciated.
I am a dual citizen and have lived in Australia for the last 20 years. I was unaware that I needed to file a tax return with the US too. Please inform me of the cost and process to set this matter right.
Hi Robert,
We replied to you via email.
Please, check your inbox.
Hello Adam,
We replied to you via email.
Please, check your inbox.
Hi,
I would like to know how much you charge to help with “Streamlined Foreign Offshore Procedures” for a Green Card holder leaving and working in UK.
No Tax return have been filed for at least the last 7 years.
I have also another question: My Green Card expiration date is in March 2019 (10 years limit) and I have to renew it. Do you know if doing tax return as non-resident will (or will not) harm my green card extension ?
Hi Sam,
Our team sent you an email. Please, check your inbox.
Thanks!
Have lived in Germany since 2000 and just found out I should have been filing US tax returns this entire time. My income was basically nothing until 2012 (supported via spouse). Divorced and started working 2012-present. Taxes of course paid to Germany during this time. Not a high-earner/high assets.
I have recieved quotes from other services for the Streamlined Program. Please send me details and prices for yours.
Thanks in advance.
Hello L. Wallace,
You can find details of our services and pricing at here .
Elsewise, you can also book a free 20-min consultation with me to discuss your situation and I can advise you how to proceed with filing late U.S. taxes.
Thanks.
Hi,
I’m another person who is a citizen of the USA have lived in Australia for 31 years. Had no idea I had to file in the USA too. Until today, when I read a story about the princess meghan potentially losing the royal household their income to the IRS. I’d laugh if this wasn’t so ludicrous. Please help.
Hi Tam,
We sent you an email with instructions how to start the process. Please, check your inbox!
Thanks.
Hi, I have been overseas for 18 year, I didnt know until recently I had to file. Please contact me.
Hi Karen,
We sent you an email. Please, check your inbox!
Hello, I was born in the USA but left to live in the UK when I was 13. I’ve never filed taxes before as I wasn’t aware I needed to. I’ve started to receive tax information from the US government regarding tax that was made on death benefits I’ve claimed from my father. I’m now panicking as I don’t know what I should do now.
Hi Dani,
Do not panic as it’s a common situation.
Please, book a free 20-min consultation with me and I will help you out.
Thanks!
Hi. I am in a similar position to Dani (above). I was born in Iowa but was brought to live in the UK as a child by my mother in 1963. I only recently became aware that as a US citizen I am supposed to file IRS tax returns. My career has been in teaching (I am now retired but work part-time) so I have always paid UK tax under Pay As You Earn. I have a couple of ISAs which yield a few pounds a year of tax-free interest. I am talking about way less than £100 per year. This is the only thing I think I could be liable for under USA tax law, as all other income, including my pension income, is taxed by the HMRC. I am a humble teacher with no big off-shore assets portfolio. I would like to get things straight with the IRS but am very nervous about it. However my tax affairs are so simple I am confident I could do it myself, but nervous about how to approach the IRS. Can you help? What fees do you charge? Thank you.
I am in the same boat as many are here. I am an expat here in China and have not filed since 2008. I have not been able to find an email address for the IRS directly to ask my questions. I am about to start receiving my Social Security and know I must file once I start getting those payments. How do I contact IRS and get back on track as you say? Fees would also be a part of my questions as well.
Hi Jon,
We replied to you via email. Kindly check your inbox, thanks!
I was born in the US to British parents in 1964. I left the US in 1966. I have no ties whatsoever with the US and never have had. I do not have a SSN or a TIN. I need advice.
Hi Lulu,
Technically you are a US citizen. The law would require you to get an SSN and file but since you don’t have a SSN, it’s unlikely that the IRS will chase you. Feel free to book a free phone consultation at 1040abroad.com/free-call/ and we can discuss your situation.
Hi. I’m living abroad and I’d like advice on how to proceed with filing late U.S. taxes.
Hi Amanda,
You can schedule a free 20-min consultation with me or other our US tax expert and we will guide you through the process. Please, visit Free 20 min call with U.S. expat tax experts to book a call. Thank you!
I have been living in Canada for 40 years and didn’t realize I was expected to file returns in both countries. What steps do I need to take to be in compliance. I have never earned very much money, in fact many years I would not have been required to file if I had earned the same in the States. Please send me information on the amnesty program. Thanks
Hi Nanci,
We sent you an email.
Thank you
Me and my wife had green card and left US in 2003. Our Green card expired in 2012. We never filed any tax return after coming back. We never received any income from US after leaving there. Do we need to do something?
Hi Ajith,
We sent you an email. Please, check your inbox.
Thanks!
HI. Can you please advise the level of difficulty in submitting the streamlined amnesty file on my own? I have had returns done in Australia by a professional and have the data easily available. Also please can you provide a detailed quote for your services?
Hi Carla,
You can become tax compliant by filing 3 years of delinquent tax returns and 6 years of FBARs. We can’t assess the difficulty in submitting the returns on your own as we aren’t aware of your tax situation. You can read more about filing late taxes here: https://1040abroad.com/faq/filing-taxes-late/
You can email us at info@1040abroad.com, we would walk you through our process and provide a quote.
Hi!
I was born in America while my parents worked there. When I was one year old we moved back to Sweden. I am the only one in my family with an american citizenship and I have not been aware of my obligations to the IRS until this year.
I tried my best to research and to do my declaration right but I am still uncertain. I am just a student, 21 years old, and have only been back in America one time for a vacation. I would like some help and guidance on what my obligations are and the rules regarding my situation with taxes and declarations.
Thank you!
Hi Natalie,
You’d need to determine if you have a filing obligation. The filing threshold for 2018 tax year is $12,000 if you are single (unmarried). You can learn more about it here: https://1040abroad.com/blog/2018-us-taxes-for-expats-filing-us-tax-returns-in-2019-as-american-living-abroad/