Streamlined Foreign Offshore Procedures – US Expat Tax Advice
Each year, around 9 million Americans living abroad are required to file US tax returns to report their worldwide income, but many are unaware of this obligation and fail to meet their US tax obligations. To address this issue, the Streamlined Filing Procedures were introduced in 2012 to encourage US citizens, green card holders, and residents to catch up on their delinquent US tax filings in a penalty-free manner. This program was created as an alternative to the IRS’s other programs, such as the Offshore Voluntary Disclosure Program that closed in 2018, and is intended to help low-risk individuals become US tax compliant.
US persons residing outside of the US can use the Streamlined Foreign Offshore Procedures to become US tax compliant, while US citizens living in the US can use the Streamlined Domestic Offshore Procedures. To qualify for the Streamlined Foreign Offshore Procedures, an individual must demonstrate that they were unaware of their filing obligation, not have had a US abode for at least one of the past three years, and have been physically present outside of the US for at least 330 full days during one or more of the past three tax years.
To become US tax compliant under the Streamlined Foreign Offshore Procedures, an individual must submit the most recent three years of federal tax returns, which may include amended returns if previous returns were incorrectly filed, and the most recent six years of FBAR forms. Additionally, they must complete Form 14653, “Certification by US Person Residing Outside of the US,”.
For those who do not qualify for the Streamlined Foreign Offshore Procedures, the following options may be available:
- Submission procedures for delinquent FBARs
- Procedures for submitting international returns that are delinquent
- Voluntary Disclosure Practices of the Internal Revenue Service
Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.
Contact us via www.xerxesllp.com or fill out our contact form to discuss your expat tax situation with us.
