U.S. EXPAT TAX GUIDE – FRANCE
What is the IRS Streamlined Offshore Filing Procedure?
The IRS Streamlined Offshore Filing Procedure is designed to assist Americans living abroad who may not have realized they needed to file US tax returns. This program is especially beneficial for those who were born in the US or acquired citizenship through their parents but have spent little to no time living in the US.
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How can the Streamlined Procedure help me?
The Streamlined Procedure requires filing the last three years of federal tax returns and the last six years of FBARs (Foreign Bank Account Reports). You must also submit an offshore certification statement explaining why previous filings were not completed and affirming that you will file all future tax returns.
This process protects you from penalties on unpaid taxes and FBAR violations, though you might still owe a small amount of interest on any unpaid taxes.
Who is the Streamlined Procedure designed for?
This program is particularly useful for “accidental Americans”—individuals who have US citizenship but have lived most of their lives outside the US. This includes those born to American parents in France or those who left the US at a young age.
What if I owe taxes under the Streamlined Procedure?
If you owe taxes under the Streamlined Procedure, you will only be required to pay a small amount of interest on the owed taxes. The primary benefit is the waiver of penalties, which can be significant. Additionally, many individuals may not owe any taxes due to foreign tax.
Why partner with a specialist Expat accountant?
Living outside of the US can make your tax filing requirements complicated. To ensure you pay the minimum amount of taxes, it’s critical to work with an accountant who understands every aspect and avenue for reducing your tax liability. We have a dedicated team of tax accountants who work exclusively with US expats earning and investing in Germany. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.
