Generally, non-willful US taxpayers abroad who have failed to file required returns and FBARs may use the IRS Streamlined Filing Compliance Procedures. Willfulness, prior IRS contact, and individual facts matter. The core requirement is that the failure to file was non-willful, meaning a good-faith misunderstanding rather than deliberate evasion.
A complete submission requires 3 years of tax returns and 6 years of FBARs. The program offers two distinct tracks:
- Streamlined Foreign Offshore Procedures (SFOP): This track carries a 0% penalty. Qualifying requires BOTH 330 or more full days outside the US in at least one covered year AND no US abode during that year. SFOP can be used to file delinquent returns for years you never filed.
- Streamlined Domestic Offshore Procedures (SDOP): This track carries a 5% penalty on the highest year-end aggregate value of those assets (Dec 31 balances, not peak intra-year), and it is for taxpayers who previously filed and must amend those returns on Form 1040-X.
FBARs must be filed separately with FinCEN, not included in the IRS paper package. Because eligibility is highly fact-specific, taxpayers should confirm their non-willful status and consider professional help before proceeding. Individuals can screen their eligibility at streamlinedamnesty.com or review available streamlined filing options.