Beginning September 1, 2012, the IRS launched a new initiative specifically for American expats who are behind on their required tax filings. This program allows taxpayers to get caught up by filing only the last three years of delinquent expat tax returns, as well as 6 years of Foreign Bank Account Reporting (FBAR) forms. All forms are filed together along with a two-page questionnaire and sent together to the Department of the Treasury. Taxpayers filing their delinquent returns and forms using the Streamlined Foreign Offshore Compliance Procedures will not be subject to penalties for the late filing of the forms or late payment of tax.
Recently, the IRS announced major changes to the program and waived all penalties for those getting caught up this way. This is a huge relief for millions of expats! We can help in all aspects of this filing including the questionnaire. Our experts will ensure you have everything you need to come forward painlessly. There has never been a better time to get back on track!
If you’re in this situation, you’re going to want to take quick action. The IRS is lenient toward those who come forward voluntarily, but if they notice your non-compliance before you have taken action, they are much less sympathetic. Also, the IRS ended the Offshore Voluntary Disclosure Program on September 28, 2018, which could signal that the era of IRS leniency is coming to an end, and the Streamlined Filing Procedures may well be on their way out.