IRS Amnesty Programs for Late Filers
The IRS Streamlined Procedures
If you are late and looking to catch up with the IRS, we can help. We are experts in the IRS amnesty programs, including the popular Streamlined Procedures, which in many cases let you catch up with no penalties. No matter the circumstances, we’ll help you find the best solution.
The IRS Streamlined Procedures
The most popular and advantageous of the IRS amnesty programs is the IRS Streamlined Procedures. Under this program, a late filer can come clean with the IRS with potentially no penalties by filing tax returns, with all required information returns, for the prior 3 years, and any delinquent FBARs for the prior 6 years. In order to qualify for the Streamlined Procedures, you must demonstrate in a written statement that your previous non-compliance was not willful. Our experts have guided numerous clients through this process and will ensure that you have the best opportunity to qualify for the Streamlined amnesty program.
Our service includes the preparation of 3 previous tax returns, 6 previous FBAR forms, and guidance and review of your non-willful statement. Should you require special information reporting, such as Form 8938 (FATCA), Form 5471 (ownership in foreign corporations), Form 3520 (foreign trusts) and the like, additional fees may apply.
For more information on the IRS Streamlined Procedures, including detailed FAQs, please visit our page dedicated to this topic: IRS Streamlined Procedures
Other IRS Amnesty Programs
While the Streamlined Procedures amnesty program is the more popular solution for late filers, the IRS offers other options depending on the circumstances.
These options include:
- Voluntary disclosure program
(for taxpayers who are concerned that their delinquency might be viewed by the IRS as willful and who seek to avoid potential criminal penalties) - Relief procedures for certain former citizens
(for accidental Americans who have renounced or plan to renounce their US citizenship and want closure with their IRS filing obligations)
Our experts at Expat Tax Professionals would be happy to discuss your particular circumstances and help you understand your best options.
Table Summarizing IRS Amnesty Programs
Circumstances When Program Is Recommended
Eligibility
Submissions to the IRS
Results / Penalties
Streamlined
(Foreign)
U.S. non-resident whose delinquency is due to non-willful conduct
- Non-resident for U.S. tax purposes
- Delinquency due to non-willful conduct
- 3 years of tax returns and information returns
- 6 years of FBARs
- Non-willful certification
- No penalties
- Payment of tax due with interest
- No final agreement
Streamlined (Domestic)
U.S. resident whose delinquency is due to non-willful conduct
- U.S. tax resident
- Non-willful conduct
- Taxpayer has not failed to file required U.S. income tax return in any of the three most recent tax years.
- 3 years of tax returns and information returns
- 6 years of FBARs
- Non-willful certification
- 5% offshore penalty
- Payment of tax due with interest
- No final agreement
Relief for Certain Former Citizens
Individual whose delinquency is due to non-willful conduct and who has renounced or plans to renounce US citizenship
- Non-willful conduct
- Not subject to U.S. exit tax
- Total tax liability of $25,000 or less for past five tax years
Tax returns for the year of renunciation and the previous 5 years
- No penalties
- No exit tax
- No tax or interest liability
- IRS notice will be sent if submission is accepted
Voluntary Disclosure Program
Taxpayer who is delinquent on domestic or offshore items with potential exposure to criminal liability and/or substantial civil penalties due to willful conduct
No specific requirements
- 6 years of tax returns and information returns
- 6 years of FBARs
- 75% civil fraud penalty applies to tax year with highest tax liability
- Willful FBAR Penalties apply
- Penalties may be reduced