Required Documentation: What You Need When Filing Under the Streamlined Procedures

If you’re a US expat who has fallen behind on filing taxes, you may be wondering: What documents do I need for the IRS Streamlined Filing Compliance Procedures? This program allows Americans abroad to catch up on back taxes while receiving penalty relief, but the paperwork is specific.

To qualify, you must submit three years of late or amended tax returns, six years of FBARs, Form 14653 (the non-willful certification), and proof of foreign residency. In addition, supporting documents like foreign income records, tax returns from your country of residence, and bank statements are often required. Having the right forms and documents prepared is the key to successfully filing under the IRS Streamlined Foreign Offshore Procedures.

Documents Required for IRS Streamlined Filing Compliance Procedures

The IRS requires a specific set of paperwork to prove both eligibility and compliance. Missing or incomplete forms can lead to rejection or loss of penalty relief. To successfully file under the Streamlined Foreign Offshore Procedures (SFOP), you must prepare:

• Three years of late or amended US tax returns (Form 1040 and required schedules).

• Six years of FBARs (FinCEN Form 114) for foreign financial accounts.

• Form 14653, the Streamlined Certification Statement explaining your non-willful failure to file.

• Proof of foreign residency showing you lived abroad for at least 330 days in one of the last three years.

• Foreign income and tax documentation such as pay slips, foreign tax returns, or bank statements.

Below, we break down each document in detail so you know exactly what to prepare.

Three Years of Late or Amended US Tax Returns

One of the main requirements of the streamlined procedures is filing the most recent three years of tax returns that were either unfiled or incorrectly filed. These returns must include:

• Form 1040 – The standard US individual income tax return.
• Schedules and additional forms as required, such as:
  • Schedule B (for foreign bank accounts and financial assets).
  • Schedule C (if you’re self-employed).
  • Schedule D (for capital gains and losses).
  • Schedule E (for rental income or foreign trusts).
  • Form 2555 or Form 1116, depending on whether you are claiming the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC).

Many expats use Form 2555 to exclude a portion of their foreign-earned income from US taxation. Others may use Form 1116 to claim a credit for foreign taxes paid, reducing or eliminating double taxation. The correct choice depends on your specific tax situation and total foreign income.

Six Years of FBARs (FinCEN Form 114)

If you had a foreign bank account balance of over $10,000 at any time during the year, you must submit six years of Foreign Bank Account Reports (FBARs). This applies to all foreign financial accounts, including:

• Checking and savings accounts
• Investment accounts
• Foreign pension funds (depending on the structure)
• Jointly owned accounts

FBARs are not filed with the IRS but must be submitted electronically through FinCEN’s BSA E-Filing System. If you have multiple accounts, you must provide the bank name, account number, maximum balance for each year, and joint owner information (if applicable).

Streamlined Certification Statement (Form 14653)

This is one of the most important documents when filing under the Streamlined Procedures. Form 14653 serves as a declaration that your failure to comply with US tax laws was non-willful. This means you must provide a written explanation detailing why you didn’t file previously.

The IRS is strict about non-willfulness claims. Your explanation should be specific and factual—vague statements like “I didn’t know I had to file” may not be sufficient. Instead, detail your situation, such as:

• When and how you became aware of your US tax obligations.
• Whether you relied on incorrect tax advice.
• If you were unaware of FBAR requirements.
• Your residency status and ties to the foreign country where you live.

Since this form is a sworn statement, any misleading or incorrect information can lead to rejection or further IRS scrutiny.

Proof of Foreign Residency

To qualify for the Streamlined Foreign Offshore Procedures, you must demonstrate that you lived outside the United States for at least 330 days in one of the last three years covered by your tax return filings. The IRS requires proof of foreign residency to ensure that you meet the eligibility criteria for this program.

Acceptable documentation includes a foreign tax return from your country of residence, which serves as strong evidence of your presence abroad. If you do not file foreign taxes, other supporting documents may include visa records, residence permits, or national ID cards that confirm your residency status.

Additionally, lease agreements or utility bills in your name can help establish your long-term presence in a foreign country. If you are employed overseas, an employer statement or contract can also serve as proof.

For expats who do not pay foreign income taxes due to low earnings or tax-free income, providing additional documentation of physical presence is especially important. In such cases, a combination of travel records, bank statements showing local transactions, or other residency-based documents may be necessary to support your claim.

Foreign Income and Tax Documentation

Since many US expats earn income abroad, the IRS may require supporting documentation to verify the accuracy of reported earnings. It is essential to gather records such as foreign pay stubs or employer-issued tax statements, which provide clear evidence of wages received. If you have investments, you should also include records of foreign investment income to account for any dividends, interest, or capital gains.

For those who file tax returns in their country of residence, copies of foreign tax returns serve as additional proof of income and taxes paid. In cases where income is deposited into foreign bank accounts, statements from foreign financial institutions reflecting these earnings can also support your tax filings.

If you are claiming the Foreign Tax Credit (FTC), you must provide documentation of foreign taxes paid. This typically includes copies of foreign tax returns, payment receipts, or official records from the foreign tax authority.

How to Submit the Streamlined Returns

Filing under the Streamlined Foreign Offshore Procedures requires mailing a complete package to the IRS. Unlike standard tax returns, these cannot be e-filed and must be sent by postal mail or private delivery service.

Step-by-Step Submission Process:

1. Prepare all necessary tax forms – Ensure that your three years of tax returns and six years of FBARs are accurate and include all required schedules.
2. Complete Form 14653 – Your non-willfulness statement must be clear and specific to avoid IRS inquiries.
3. Write “Streamlined Foreign Offshore” in red ink at the top of the first page of each amended or late tax return.
4. Mail your tax returns and Form 14653 to the IRS at the designated address for Streamlined submissions: 

   Internal Revenue Service
   3651 S IH35, MS6063 AUSC
   Austin, TX 78741 USA 

5. Submit your six years of FBARs electronically via the FinCEN BSA E-Filing System. These are filed separately from your tax returns.
6. Keep copies of all documents for your records in case the IRS requests additional information.

Why Proper Documentation Matters

Submitting incomplete or incorrect forms can lead to delays, rejection, or loss of penalty relief eligibility. The IRS carefully reviews each case, and errors could result in IRS audits or additional tax assessments. Ensuring all necessary documents are filed correctly is essential to completing the Streamlined process successfully.

For expats who have unknowingly failed to meet their US tax obligations, the Streamlined Procedures offer a valuable opportunity to catch up without penalties. However, filing requires careful preparation of three years of tax returns, six years of FBARs, a detailed non-willful certification, and supporting foreign income documentation.

Since the submission process is manual and requires attention to detail, many expats choose to work with a US expat tax professional to avoid costly mistakes.