For many U.S. citizens living abroad, discovering they have unfulfilled U.S. tax filing obligations can be stressful and confusing. The Streamlined Foreign Offshore Procedures offer a penalty-free way to become compliant — and at 1040 Abroad, we make that process fast, affordable, and worry-free.
Here are two real-world examples of how our team has helped clients achieve peace of mind, avoid penalties, and even receive refunds.
Disclaimer: The following case studies are based on real outcomes experienced by our clients. However, personal information, locations, and identifying details have been changed to protect client privacy.
Case Study 1: A Family in Europe Finds Relief and a Refund
Background
A young American family living in France — a couple with two small children — had lived abroad for several years. One day, their local foreign bank contacted them requesting their U.S. tax identification numbers to comply with FATCA reporting. That’s when they realized they were still required to file U.S. tax returns each year, even while living overseas.
Terrified about possible penalties for years of non-compliance, they reached out to 1040 Abroad for help.
Our Approach
Within two weeks, our team prepared their complete Streamlined Compliance Package, which included:
-
Three years of delinquent income tax returns
-
Six years of FBARs reporting foreign financial accounts
-
Form 14653, the required certification of non-willful conduct
During the process, we discovered that their two children qualified for the Refundable Additional Child Tax Credit — a benefit many expats overlook.
Results
Because they had paid significant income taxes in France — where tax rates are higher than in the U.S. — the Foreign Tax Credit eliminated all their U.S. tax liability.
Instead of owing money, the family received refunds under the Child Tax Credit for each of the three covered tax years.
Refund Calculation
| Tax Year | Refundable Credit per Child | Total Refund (2 Children) |
|---|---|---|
| 2022 | $1,600 | $3,200 |
| 2023 | $1,600 | $3,200 |
| 2024 | $1,700 | $3,400 |
| Total Refund | $9,800 |
Outcome
“We were terrified we’d owe thousands in back taxes. Instead, 1040 Abroad guided us every step of the way and we ended up getting a refund. The entire process took less than two weeks — and the peace of mind is priceless.”
This family not only became fully compliant with the IRS, but also learned that compliance can work in their favor — resulting in a $9,800 refund and zero tax owed.
Case Study 2: A Self-Employed Software Developer in Germany Reclaims Peace of Mind
Background
A self-employed American software developer living in Germany had not filed U.S. tax returns in over a decade.
He was aware that self-employed Americans must usually pay U.S. self-employment tax — and feared he might owe tens of thousands of dollars.
After weeks of worry, he contacted 1040 Abroad to understand his options under the Streamlined Foreign Offshore Procedures.
Our Approach
Our specialists reviewed his situation and confirmed that because Germany has a Totalization Agreement with the United States, he was already paying into Germany’s social security system — which means he did not owe U.S. self-employment tax.
We prepared and submitted his Streamlined Compliance Package in under two weeks, including all delinquent returns, FBARs, and his Form 14653 certification.
Results
Thanks to the foreign tax credit and the totalization agreement, his U.S. tax liability was zero. He owed no penalties and became fully compliant — without paying anything to the IRS.
Outcome
“I hadn’t realized I was still required to file U.S. taxes while living abroad. When I learned about it, I was anxious I’d owe a fortune. 1040 Abroad explained everything clearly, handled the process quickly, and I didn’t owe a single dollar. I finally sleep well again.”
This client’s experience shows how U.S. expats who are self-employed abroad can often avoid unnecessary U.S. taxes through the Streamlined Program — when guided by experts who understand international tax treaties.
The 1040 Abroad Difference
At 1040 Abroad, we’ve helped thousands of U.S. expats and Green Card holders become compliant under the Streamlined Filing Compliance Procedures.
Our flat-fee Streamlined Compliance Package includes every form and filing required — including Form 14653 — with no hidden charges.
Whether you’re a family abroad or a self-employed professional, our streamlined process ensures you:
-
Become fully compliant with U.S. tax laws
-
Avoid all IRS penalties
-
Possibly receive a refund instead of paying tax
-
Regain peace of mind knowing your filings are complete and correct
Get Started Today
If you’ve lived outside the U.S. and haven’t filed taxes, don’t panic. Learn more about how our Streamlined Compliance Package can help you — or explore the full Streamlined Filing Compliance Procedures to understand how the program works.
