Streamlined Offshore Procedures were established to allow Americans abroad to get caught up on filing their back taxes. The Streamlined Offshore Filing Procedures allow US expats who have fallen behind on filing an opportunity to catch up on their US income taxes without having to worry about penalties or criminal liability.
Many US expats are surprised to find out they may have US taxes abroad and they still encounter the IRS overseas. American expat tax services are difficult to find in foreign countries. Nevertheless, US expat tax filing is mandatory even if you are paying foreign taxes abroad. Independence Expat Tax offers US expat tax advice and US tax help for expats wanting to file US taxes abroad.
The IRS streamlined program simply requires you to file 3 years of delinquent tax returns and 6 years of foreign bank account reports (FBARs) instead of having to file potentially decades of tax returns that went unfiled while living abroad.
With the foreign earned income exclusion and foreign tax credit, we find many Americans living abroad owe nothing to the IRS even though they may still need to file a tax return. Many of our clients find that they owe zero US taxes because of the foreign earned income exclusion and foreign tax credits.
To successfully submit this Streamlined Offshore Disclosure Program to the IRS, you should work with an experienced Certified Public Accountant who has a track record of dealing with these types of situations. Contact us today at Independence Expat Tax for a free consultation!
Eligibility for Streamlined Procedures
Streamlined Filing Compliance Procedures are for US citizen taxpayers and permanent residents who neglected to file tax returns and/or foreign bank account reports (FBARs). The requirements for the program include:
Qualified taxpayers that comply with all the requirements for Streamlined Foreign Offshore Procedures will NOT have penalties that would typically be associated with failing to file tax returns and FBARs. If for some reason there is an amount due, there would be a small amount of interest associated but, IRS interest rates are VERY low in comparison to typical credit cards or other types of loans. If you don't end up owing any tax, you don't even need to worry about any interest!
If you have were not aware you needed to file US income taxes while living abroad the Streamlines Procedure for US expats is helpful to get you caught up while avoiding penalties.
Independence Expat Tax provides expat tax services for Americans abroad. We make filing US income taxes abroad seamless and refreshingly simple. Connect with us today for a free consultation.
As a US expat, you might be seeking tax advantages for US citizens living abroad. Many US citizens or U.S. resident alien living abroad have worldwide income that will be taxed. The Foreign Earned Income Exclusion (FEIE) Form 2555 can be a valuable US income tax deduction if you meet the requirements. To meet the qualification a few other tax rules do need to consider such as Foreign- Earned Income, Self-Employment Income, Not foreign Earned Income, and Foreign Tax Home