If you’ve fallen behind on filing US taxes while living abroad, the IRS Streamlined Filing Compliance Procedures may help you get back into compliance without facing heavy penalties. Below, we answer the most common questions taxpayers ask about the streamlined program.
1. What is the purpose of the Streamlined Filing Compliance Procedures?
The Streamlined Filing Compliance Procedures is designed to help eligible taxpayers catch up on past-due US tax returns and FBARs while avoiding most penalties.
This IRS program is intended for individuals who failed to file due to non-willful reasons — such as not knowing about their filing obligations. By participating, taxpayers can catch up on back taxes by filing three years of delinquent tax returns, submitting six years of FBARs, disclosing foreign assets and income, and receiving a penalty waiver.
2. Do the IRS Streamlined Procedures differ for taxpayers in the US vs. abroad?
Yes. There are two versions of the IRS streamlined program:
Streamlined Domestic Offshore Procedures (SDOP): For US residents.
Streamlined Foreign Offshore Procedures (SFOP): For expats living abroad.
Both require reporting foreign accounts and income, but eligibility rules differ based on residency.
3. Who qualifies for the Streamlined Filing Compliance Procedures?
To qualify for the IRS streamlined filing program, taxpayers must meet these conditions:
Non-willful non-compliance (mistakes or ignorance, not deliberate tax evasion).
Voluntary participation (apply before IRS contacts you).
No previous participation in the Offshore Voluntary Disclosure Program (OVDP).
SDOP (for US residents): Must have filed the past 3 years of returns (even if incomplete).
SFOP (for expats abroad): Must meet the 330-day foreign presence test, and typically have not filed US tax returns for the last 3 years.
4. Is there a deadline to use the Streamlined Filing Compliance Procedures?
Currently, there is no official deadline, but the IRS can close the program at any time, so it’s best to act as soon as possible.
5. Can I claim the Foreign Earned Income Exclusion when filing under the Streamlined Procedures?
Yes. Taxpayers filing through the IRS streamlined filing program can still claim the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit on their past-due returns. These provisions often minimize or eliminate US tax liability, making compliance much less costly.
6. Can the Streamlined Filing Procedures be used for amended tax returns?
Yes. If you previously filed tax returns but omitted foreign income or accounts, you may submit amended returns through the IRS streamlined program. This option allows taxpayers to correct errors while avoiding most penalties, provided their non-compliance was non-willful.
7. How does the IRS confirm receipt of a Streamlined Filing?
SDOP: The IRS generally sends a confirmation letter.
SFOP: The IRS usually does not issue confirmation, since no penalty is applied.
8. Could I still be audited after filing under the streamlined program?
Yes. Filing under the IRS Streamlined Filing Compliance Procedures does not eliminate the possibility of an audit. However, once you are compliant and have fully disclosed foreign income and assets, the risk of additional penalties is minimal.
9. How long does the IRS take to process a submission under the streamlined filing procedures?
IRS processing typically takes 6 to 12 months. You generally won’t receive confirmation unless additional information is needed—no news typically means your filing is accepted.
10. What documents and forms are required for the Streamlined Amnesty Program?
You must submit up to 3 years of tax returns, 6 years of FBARs, and complete Form 14653 (for SFOP) or Form 14654 (for SDOP). Depending on your situation, you may also need to include other relevant documents or information returns like Form 8938, 3520, 5471.
11. What are the potential penalties under SDOP compared to SFOP?
Under SDOP, you pay a 5% Title 26 Miscellaneous Offshore Penalty based on the highest aggregate value of foreign assets—not the steep penalties per form that apply otherwise. In contrast, SFOP carries no penalties if you’re eligible.
12. What qualifies as “non-willful” conduct under the streamlined procedures?
“Non-willful” means your failure to file or report was due to ignorance, negligence, or misunderstanding, not intent to evade tax. A one-time mistake is more likely to be deemed non-willful than repeated noncompliance
Final Thoughts on the IRS Streamlined Filing Compliance Procedures
The Streamlined Filing Compliance Procedures give eligible taxpayers—especially Americans living abroad—a clear path to get back into good standing with the IRS. By filing three years of tax returns, six years of FBARs, and certifying that your past non-compliance was non-willful, you can avoid most penalties while correcting past mistakes.
If you’re still unsure about eligibility, required documentation, or how the process works, the key takeaway is simple: yes, you can use the Streamlined Procedures to become fully compliant without facing the harsh penalties of other IRS programs.
