How many years of late tax returns do I need to file to become compliant?

If you have never filed a U.S. tax return, but were required to do so, you may qualify for the Streamlined Filing Compliance Procedures if your failure to file was non-willful. The Streamlined Procedures are a tax amnesty program designed by the IRS for taxpayers who were previously unaware of their U.S. tax filing obligations and want to become compliant.

The Streamlined Procedures are open to taxpayers who can certify that their failure to timely file complete and correct tax returns is not due to willful conduct. For taxpayers residing outside the United States, all penalties are waived. You are required to file income tax returns for the last 3 years for which the due date has passed. In addition, you are required to file a Foreign Bank Account Report (FBAR) for each of the last 6 years in which the aggregate value of your foreign financial accounts exceeds $10,000.

In case you are considering to renounce your U.S. citizenship, additional requirements apply. Generally, you would be required to be able to certify that you are tax compliant at the time of renunciation. In this context, tax compliant means having filed and paid all taxes due for the last 5 years for which the due date has passed.

We strongly recommend that you become compliant as soon as possible. Please contact us with any questions you may have about the Streamlined Procedures, expatriation, or our pricing. Our tax professionals have helped many U.S. taxpayers become compliant.