The IRS Streamlined Tax Amnesty Program – Complete Guide
Published on February 22, 2021
Updated on December 16, 2024
Written by: Clark Stott
Reviewed by: Darryl Albuquerque
Your Complete IRS Tax Amnesty Guide – Everything you need to know in simple terms…
Did you know all US citizens living abroad must file annual US tax returns? If you’re feeling overwhelmed, you’re not alone. Common questions include:
- Do I have to pay US taxes while living overseas?
- Will I face penalties for missed tax returns?
The IRS has an official program for expats that makes catching up on overdue taxes much easier and protects you from potential penalties.
What is the Streamlined Tax Amnesty program?
The Streamlined Tax Amnesty Program, or IRS Streamlined Offshore Filing Procedure, is designed to help US citizens and Green Card holders abroad who have fallen behind on their US tax obligations. It’s a simple, penalty-free way to catch up and stay compliant.
Whether you’ve never filed a US tax return, which is common for Accidental Americans, or you haven’t filed since you moved overseas or you’ve been filing, but you’ve missed important details, such as non-US income, non-US pensions and retirement accounts, the tax amnesty program has you covered.
The IRS designed the Streamlined Tax Amnesty program specifically for US citizens and Green Card holders that live outside the United States. It is a simple streamlined way to catch up on US taxes and get yourself back on track.
In a nutshell, you only have to file your last three years of tax returns (no matter how many years you’ve missed) and six years of FBARs (Foreign Bank Account Reports).
What exactly do I benefit from by using the Streamlined Procedure?
The IRS promises no late-filing penalties or fines, and you don’t have to file tax returns for any of the other missed years. This can be a real lifesaver!
Visit the IRS Website to learn more…
Do I qualify for the Streamlined Tax Amnesty program?
The program was originally intended for individual taxpayers who were considered to be “low risk” or had minimal returns to be filed. This excluded a lot of expats which, in turn, did not resolve the problem at hand. Fortunately, the IRS expanded its scope in 2014, paving way for more taxpayers to have access to the amnesty program.
Here is the eligibility criteria, you qualify for the Streamlined tax amnesty program if you;
Then, the Streamlined Tax Amnesty Program is for you!
Join the 60,000 American Expats who have benefited from this program!
You might qualify for something called First Time Penalty Abatement (FTA). This program helps by waiving certain penalties for late filing, late payments, or missed tax deposits.
You must not have had any penalties in the last three years before the year you’re asking for relief.
You must have filed all your tax returns for the past three years.
You need to have paid or set up a payment plan for any taxes you owe..
What does non-willful conduct actually mean?
There are many meanings of “Non-willful conduct”. To simplify, it means you didn’t break the rules on purpose. It’s like when you accidentally forget to do something or make a mistake because you didn’t understand how the rules worked. Maybe you were trying your best to follow the rules but got confused, we’ve all done that before. Also, you may have received poor advice from a tax professional and believed you didn’t need to file US tax returns.
What is the Streamlined Certification and is it important?
The Streamlined Certification (Form 14653) requires a statement to describe what you haven’t been filing your tax returns. You’ll need to sign under penalty of perjury that your reasons are non-willful.
It’s incredibly important because making a declaration under penalty of perjury means you promise that what you’re saying is true, and if it turns out you’re lying, you could get in big trouble for breaking that promise.
How does the Streamlined Tax Amnesty program work?
Once we’ve checked you’re eligible, we prepare your 3 tax returns, 6 years of FBARs and your Streamlined Certification.
What’s the process and tax amnesty timeline?
✔ Complete our Streamlined Amnesty Tax Questionnaire
✔ You’ll be contacted by our Client Services Team
✔ We’ll assess your information and let you know what documents
to provide.
✔ Upload your documents, then sit back and leave the hard
work to us.
✔ Your Streamlined tax return package will be ready in approximately 20-35 working days. Complex returns can take longer.
Normally, when preparing your submissions, you would need to prove your eligibility for the Streamlined Program first:
- Check If You Qualify
- If you live outside the US, you must meet certain residency rules (being physically present outside the U.S. for at least 330 full days in a 12-month period).
- If you live in the US, you need to show that your failure to file or pay taxes was unintentional.
- Apply for a Taxpayer Identification Number (if needed)
- If you don’t have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you’ll need to apply for an ITIN using Form W-7. This application must include supporting documents, such as a certified copy of your passport or another form of valid identification.
- Without an ITIN or SSN, you won’t be able to file the required tax returns.
- File Missing Tax Returns
- Complete and file federal tax returns for the last three years.
- Include all relevant forms, such as FBARs (Foreign Bank Account Reports), if you held foreign accounts exceeding US$10,000 in total during any of the six reporting years.
- Prepare an Original Signed Statement
- To prove your eligibility for the streamlined program, you must submit an original signed certification form or statement (Form 14653 for US persons residing outside of the US or Form 14654 for those living in the US). This statement certifies that your failure to file was not willful.
- Your statement must be truthful and clearly explain the reasons for your previous non-compliance, such as misunderstanding filing rules or unintentional oversight.
- Gather Required Documents
- Collect necessary documents like W-2s, 1099s, proof of foreign income, and residency records.
- If you’re filing an ITIN application, include certified copies of identification documents with your Form W-7.
- Submit Your Paperwork
- Send your completed tax returns, certification form, ITIN application (if applicable), and other supporting documents to the specific IRS processing address for streamlined submissions.
What is the required documentation for the Streamlined Amnesty Program?
The Streamlined Filing Compliance Procedures require specific documents to ensure the IRS processes your submission without delays. Here’s what you will generally need to prepare:
- List of Required Forms
- Form 1040: Your regular US individual income tax return.
- Form 1040X: Used to amend prior-year returns if corrections are needed.
- Form 8938: Reports foreign financial assets, if applicable.
FBARs (FinCEN Form 114): Discloses foreign bank accounts exceeding US$10,000 in total. - Form 3520/3520-A: Required for reporting foreign trusts or gifts.
- Form 5471: For US taxpayers with ownership in foreign corporations.
- Form 14653
- This form is essential for certifying that your failure to comply with tax obligations was non-willful. A clear and truthful explanation of why you didn’t file on time is critical to avoid penalties.
- Additional Documents
- A signed statement explaining your non-willful conduct.
- Taxpayer Identification Number (TIN) or ITIN application, if you don’t already have one.
- Proof of any foreign taxes paid, if claiming Foreign Tax Credits.
How much does the Streamlined Amnesty program cost and what’s included as standard?
The basis of the IRS Streamlined Amnesty program is that we prepare and file your last 3 overdue tax returns.
We need to prepare FBARs for the last six years. The FBAR provides information about your non-US bank accounts. We report the account number, we say if it’s a joint account, and the highest balance during the year. Remember, you don’t have to worry about FBAR failure-to-file penalties when you’re filing via the Streamlined Foreign Offshore Procedures.
This is the legal bit and we’ll take care of it. We simply ask you why you haven’t been filing US tax returns. Your answer can be as simple as “I didn’t know I had to”.
Each client will be looked after by their dedicated Client Coordinator. Your Coordinator can help you with information we need, answer any questions you have and provide updates on our progress. They’ll also be there at the end of the process to help you file your tax returns.
In the unlikely event of an audit by the IRS, we’ll be on hand to support you through the process. If you receive a notice from the IRS, we’ll help with that also.
Your tax returns will be checked by at least three US tax professionals before being delivered to you, so you have peace of mind that it’s accurate and thoroughly reviewed.
Every tax return prepared by Expat Tax Online is signed by an IRS licensed tax professional (EA or CPA). You’ll see their name and IRS license number on your tax return and so will the IRS.
You’ll be fully IRS tax compliant at the end of the process and your foreign financial assets will be disclosed to the IRS with accuracy and protection from penalties.
The majority of clients pay our base rate. There are certain types of investments that require additional paperwork. The most common examples are shareholdings, investing in stocks and shares and making contributions to certain types of non-US retirement accounts. Minor additional fees can be added for those with high income, self-employment income and rental property ownership.
The IRS will not ask you to file older tax returns except for your latest three overdue tax returns. Other tax returns that have not been filed will never need to be filed. The exception to that is if the IRS has already contacted you about a prior tax year or they receive an income statement, such as a W-2 from one of the prior years.
Best price for the IRS Streamlined Tax Amnesty program
Usually US$1,195
Get started this month and get your 2024 tax return FREE OF CHARGE
ENDS January 31, 2025*
It’s more than just a special offer (PLEASE READ);
When you file via the Streamlined Tax Amnesty program the IRS is letting you off the hook with possible tax due, late filing penalties and more (at least from their perspective). Your end of the bargain is to keep filing tax returns on time each year going forward.
Considering the Amnesty program is filing your last three overdue tax returns, your current tax return could be due in a matter of weeks or months and it needs to be filed on time.
When comparing quotes, always compare apples with apples. Make sure to check how much you’ll be charged to file your next due tax return.
Some firms discount their Streamlined Amnesty package fee and then charge higher fees for your next tax return.
We’re currently including a standard tax return FREE OF CHARGE with our Streamlined Tax packages so you’re completely covered. Get a quote from us today, you’ll be pleasantly surprised.
Why can’t I just simply file my overdue tax returns?
Filing your US taxes late or failing to report FBARs can subject you to a lot of failure-to-file penalties. The main reason why the Streamlined Tax Amnesty Program is so popular is that it absolves you from any fees and penalties related to late filings and payments. Also, you only have to file the last 3 years of tax returns, even if you haven’t filed for 20 years! Once you’ve completed the program, you’ll be completely tax compliant with the IRS.
What about Stimulus payments, can I claim them?
U.S. citizens and Green Card holders are eligible to claim the Recovery Rebate Credit which is a refundable payment. To be eligible, your worldwide income during 2020 or 2021 needed to be less than US\$75,000. You need a valid Social Security Number.
We can claim up to US$1,400 for you via the IRS Tax Amnesty program (Stimulus payment 3).
The deadline to claim Stimulus payments one and two has now passed.
The deadline to claim Stimulus payments three is April 15, 2025.
You can claim the third stimulus payment on your 2021 tax return when filing via the Streamlined Amnesty Program for tax years 2021, 2022 and 2023.
Who isn’t eligible or doesn’t qualify for the Streamlined Tax Amnesty?
The IRS has already contacted you:
If you’ve received a written request from the IRS to file a US tax in any of the three Streamlined years, you shouldn’t file under Amnesty. If you do, the tax returns will be processed as regular tax returns and you won’t be protected from penalties. You must come to the amnesty program voluntarily. Contact an experienced Streamlined Offshore Filing Procedure specialist before filing.
Living in the United States:
If you haven’t been living outside the US for at least one year out of the three tax years you’re filing for, you won’t be eligible to file under amnesty. This “offshore” disclosure program is specially for taxpayers living outside the United States. There are other programs for people living in the US.
IRS investigation:
If you’ve been investigated by the IRS it’s highly unlikely you’ll meet the non-willful conduct requirement for the Amnesty program.
If you think any of these reason may apply to you, don’t worry about it. Contact our Amnesty team for help or contact another experienced Streamlined Offshore Filing Procedure specialist before filing.
What do I need to get started on the Streamlined procedure?
Grab this information before you get started…
Personal details:
You’ll need your Social Security Number and the SSNs of your dependents. You’ll also need the SSN of your spouse if you’re filing jointly. If you’re waiting for your SSN to come through, you can still start the Streamlined process.
Income:
Dig out your payslips or annual pay summaries as you’ll be asked to provide your annual income from salary/wages from January to December.
If you’re self-employed, you’ll need your income and expenses for January to December.
Investments:
If you have investments, such as an ISA or ETF, you may need annual statements to hand.
Pension / Retirement Accounts:
If your employer pays into a pension or retirement account for you, you’ll need to know how much – check your payslips. It’s likely you’ll be asked for your highest balance during the year and on December 31.
This should be everything you need to get started.
I’m 10 years behind! How does it work?
Leo V. Zimny CPA has been helping Americans abroad for over 30 years.
Here’s what he has to say about the IRS Streamlined Tax Amnesty program…
How long does the Streamlined procedure take?
Filing with the IRS:
Your tax returns must be mailed to the specific Streamlined Offshore address in Austin, Texas. Allow up to 10 days for the IRS to receive your package. It could take longer depending on where you mail from. If you’re living in a country that doesn’t have a reliable postal service, consider sending your tax package with DHL or FedEx.
IRS processing time:
The IRS can take anywhere from four weeks to four months to process your tax returns depending on their workload. The IRS will NOT send confirmation of your acceptance into the Streamlined program, but if there is a problem, you’ll receive a letter in the mail. No news is good news.
Filing Foreign Bank Account Reports (FBARs):
Unlike your tax returns, FBARs are only ever e-filed and we take care of e-filing for all our clients. FBARs are typically processed within a day or two.
Are there special considerations for US expats?
We might be repeating ourselves, but yes, if you’re a US expat using the Streamlined Filing Compliance Procedure, there are things to keep in mind:
-
FBAR Filings (Foreign Bank Account Reports):
- If you had more than US$10,000 in total across your foreign bank accounts at any time during the year, you must file an FBAR (FinCEN Form 114).
- The streamlined program lets you file late FBARs without penalties, but you need to report every account accurately.
-
Foreign Corporations and Investments
- If you own a share in a foreign corporation or partnership, you might need to file extra forms, such as:
- Form 5471 (for foreign corporations).
- Form 8865 (for foreign partnerships).
- These forms can be tricky, so you might want professional help.
- If you own a share in a foreign corporation or partnership, you might need to file extra forms, such as:
-
Foreign Earned Income Exclusion (FEIE)
- If you live abroad, you can use the Foreign Earned Income Exclusion (Form 2555) to reduce your taxable income by up to US$126,500 (2024).
- The streamlined program allows you to claim this exclusion for past years if you missed it.
-
Foreign Tax Credits
- If you pay taxes in another country, you can claim Foreign Tax Credits (Form 1116) to avoid being taxed twice. This is especially helpful if you live in a high-tax country.
-
Residency Requirements
- You must meet the program’s non-residency rule, meaning you lived outside the US for at least 330 days in one of the last three years.
Can a married couple file under the IRS Amnesty Program together?
Yes, married couples can file for a joint Streamlined procedure, provided that they file together and the spouse has a valid Social Security Number or ITIN. The standard price will still apply whether there is one or two people on the tax returns.
Also, if you have dependent children, check if you’re eligible for the Child Tax Credit Refund.
My tax returns are updated but I have not filed FBARs for all my non-US accounts, what should I do?
The filing options will depend on whether or not you have non-reported interest from these bank accounts or if you have other reporting requirements.
If you have reported these returns, you may file the FBARs using the Delinquent FBAR Submission Procedure. If they are unreported, however, you have to file through the Streamlined Foreign Offshore Procedure.
Can I use the Amnesty program if I own a company that I set up outside the United States?
Yes, you can. Owning a non-US company does make filing US taxes more complicated and there are more penalties to be aware of. Filing under the Streamlined Tax Amnesty can save you from those penalties.
Depending on the country your company was established in, our team may have options to help you reduce the amount of IRS tax reporting that is required on an annual basis, saving you time and money.
The IRS will expect you to file Form 5471 to report your company details, shareholder information and financial situation.
Form 5471 is an Information Return of U.S. Persons With Respect To Certain Foreign Corporations.
Read more about the Form 5471
My tax returns are filed, but I did not file a 5471 for my foreign corporation, what should I do?
Use the Streamlined Amnesty program, we’ll refile your returns correctly, including the correct paperwork and forms for your Company or Partnership.
Because you’re filing using the Foreign Offshore Filing Procedure (tax amnesty program), you’ll be saved from late filing penalties that can be as much as \$10,000 per year.
Holding profits in your company at the end of the financial year can have severe consequences depending on the country your company is established in.
Get in touch with us and speak to a foreign corporation specialist to guide you safely through the US tax filing process.
What makes the streamlined tax amnesty different from other IRS programs?
The Streamlined Tax Amnesty stands out from other IRS prgorams because they focus on taxpayers who unintentionally failed to meet their tax obligations. Here is how it differs from other IRS programs:
- Focus on Non-Willful Conduct
- Penalty Relief
- Simplicity and Accessibility
Can I use the streamlined tax amnesty alongside other IRS programs?
No, the Streamlined Filing Compliance Procedures cannot typically be used alongside other IRS programs. Each program is designed to address specific situations, and taxpayers must choose the one that aligns best with their circumstances
Examples:
-
Delinquent FBAR Submission Procedures
- Designed for taxpayers who failed to file FBARs (Foreign Bank Account Reports) but don’t owe additional tax.
- There are no penalties if taxpayers meet the eligibility criteria and voluntarily submit the required FBARs.
-
IRS-CI Voluntary Disclosure Program (VDP)
- Geared toward taxpayers with willful conduct who want to avoid criminal prosecution.
- Requires extensive financial disclosures and can lead to higher penalties.
-
Offshore Voluntary Disclosure Program (OVDP)
- This program closed in 2018, but existing participants may still be subject to closing agreements for unresolved cases.
Can I still use the streamlined tax amnesty if I’m planning to move back or have already moved back to the US?
If you have lived at least one year abroad out of the last three years, you can use the US Domestic Streamlined Procedure made for taxpayers who have failed to meet the residency requirement. This is a separate program and some of the benefits are different compared to Offshore Streamlined program.
I haven’t filed my tax returns for more than 10 years, will that be a problem?
No! Should you choose to go through the Streamlined Procedure, how long you haven’t filed will not be an issue; the IRS will no longer pay attention to neglected tax returns prior to 2019 as long as you promise to file each year going forward.
We will prepare and file your 2021, 2022 and 2023 US tax returns and your non-US bank account reports for the last 6 years (FBARs).
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Why do I have to file US taxes when I live abroad?
In simple terms, it’s United States law.
All US citizens, regardless of where they live and regardless of dual citizenship, have to report their worldwide income every year by filing a US tax return, if it is over a certain threshold (which is quite low – see below).
The US is one of only three countries in the world where the taxation system is based on citizenship. If you’re going to a quiz, the other two are Eretria and the Philippines.
Even if you’ve never lived in the United States or left when you were a child, this still applies to you and your worldwide income.
Almost every other country is residency-based, and this leads to a rise in confusion over filing US tax returns and obligations once you’ve moved abroad.
Surely I can’t be the only one that didn’t know?
You’re certainly not the only one. Over 48,000 people have already caught up on their US taxes via the Streamlined Tax Amnesty program.
Thousands of American citizens living abroad have failed to submit their tax returns to the IRS simply because they didn’t know they had to, or they received poor, incorrect advice.
Starting a new life abroad can make most of us forget about previous tax responsibilities back in the US, and that’s if you ever knew in the first place!
Filing thresholds to file US tax returns
The filing threshold set by the IRS is categorized by Filing Status.
There are five main filing status types:
-
Single
-
Married filing jointly
-
Married filing separately
-
Head of household, and
-
Qualifying surviving spouse.
If you’re single, you’ll need to file a 2024 US tax return if your worldwide income exceeds the equivalent of US\$14,600.
If you’re married and filing a joint tax return with your spouse (assuming they’re a US taxpayer), you’ll need to file a 2024 joint US tax return if your worldwide income exceeds the equivalent of US\$29,200.
If you’re married filing separately (most common for those married to a non-US person), you’ll need to file a 2024 tax return if your worldwide income exceeds the equivalent of US\$5. That’s not a typo, it really is just five dollars.
If you’re Head of Household (married or divorced with US dependents) with worldwide income exceeding the equivalent of US\$21,900, you’ll need to file a US tax return.
What if I hold US citizenship and I’m self-employed outside the United States?
If your worldwide income exceeds the equivalent of just US\$400 the IRS will expect a tax return from you, regardless of the filing statuses above. If the country you’re working in doesn’t have a Totalization Agreement with the United States you may have to pay US self-employment tax.
What if my only income is from dividends and interest?
That’s still considered income. Add all your worldwide income and use the filing thresholds above to see if you need to file.
Can expats and Americans living abroad use the Streamlined Tax Amnesty program? Do I qualify?
No, not everyone can use the IRS Offshore Filing Procedure but keep in mind it is specifically designed for anyone that holds US citizenship and doesn’t live in the United States.
The main criteria to file via the IRS tax amnesty program are:
-
Non-willful Conduct:
- What does that mean? In a nutshell, it means you didn’t purposely avoid filing your US tax returns. Many US citizens living outside the US simply don’t know they have to file US tax returns. Unfortunately, a common problem is friends and family members with good intentions misunderstand the US tax code and offer poor advice to those around them.
-
You’re living outside the United States
- You’ve physically been outside of the United States for a minimum of 330 days in any of the three tax years you’re filing under Amnesty. You also can’t have had an abode (a physically building where your family in the US for a year of more of three most recent tax years you’re filing for.
-
Social Security Number (SSN) or ITIN
- You must have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) to file tax returns via the IRS Tax Amnesty program. If you’re not a US citizen or eligible for an SSN, you can apply for an ITIN by sending Form W-7 and your certified identification paperwork along with your Streamlined tax return package.
-
IRS contact or ongoing issues
- If the IRS has contacted you in regards to filing tax returns in any of the last three years, your tax returns will likely not be filed under Amnesty protection but will be accepted and processed as regular tax returns. This can be a problem if you owe tax or you’re filing a particular IRS tax form that carries a late-filing penalty.
If you have ongoing issues with the IRS from more than three years ago, we recommend you get professional advice from an IRS Streamlined Offshore Filing Procedure specialist. You may still be able to file under Amnesty, but your case needs to be considered in detail first to avoid further issues and possible penalties.
If you’ve been investigated by the IRS for tax evasion, you cannot file using the Streamlined Offshore Compliance Procedure.
If you have questions and you’d like to speak in confidence, please get in touch via our Contact page.
What’s the process?
1. QUESTIONNAIRE
Complete our simple online questionnaire, upload any statements, and we’ll do the rest.
2. NUMBER CRUNCH
Leave all the calculations and the tough stuff to us. Our accountants love it.
3. PRINT & SIGN
Download your completed tax package and sign the highlighted areas. All Streamlined Amnesty applications need to be mailed to a specific IRS address.
4. SHARE THE LOVE
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Why work with Expat Tax Online?
EXPERIENCE MATTERS
We’ve already taken over 3,000 people successfully through the IRS Tax Amnesty. Do it once. Do it right.
WE’RE LICENSED
At least 35 members of our tax team are licensed by the IRS. That’s easy to verify on the official IRS website.
CLIENT MANAGER
You’ll have a dedicated team member by your side throughout the process. Our tax questionnaire is easy to use.
PRICE LEADER
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