IRS Streamlined procedure
So, you haven’t filed your US tax return for few years?
Streamlined Foreign Offshore Procedures can be solution for you.
This means that US expatswho are behind on their tax returns due to the lack of knowledge about their filing obligations can catch up without penalty. However taxpayers using the streamlined procedures must certify that their failure to disclose their offshore financial assets was non-willful.
Non-willful conduct is conduct can be described as the result of a good faith misunderstanding of the requirements of the law. Negligence might not be considered as a now-willful conduct.
If your tax return filed under Streamlined procedure will be accepted by IRS, all penalties will be waived, that's why filing under the Streamlined Procedures is the best way for most expats to become compliant with their US tax obligations.
To catch up using the Streamlined Procedure you must:
- File last 3 deliquent federal tax returns, plus the actual tax return. For example in Feb 2018 it would be deliquent tax returns for years 2014 - 2016, plus the actual for year 2017.
File your last 6 FBARs (Foreign Bank Account Reports), if applicable.
Self-certify in "streamlined procedure form" that your previous failure to file was non-wilful.
Pay any taxes due