White House, Washington DC, USA

Getting your US Tax Returns up to date

Not filed your US Tax Returns?

If you have fallen behind on your US tax reporting obligations, you could potentially be subject to various penalties including:

  • failure-to-file penalties (up to 25% of unpaid taxes);
  • failure-to-pay penalties (up to 25% of unpaid taxes);
  • accuracy-related penalties (usually 25% of any underpayment);
  • information return penalties ($250 - $3,000,000);
  • FBAR penalties ($10,000-$100,000 or more).

If you are in this situation, do not panic, our team has experience assisting US taxpayers previously unaware of the need to file and those who had simply fallen behind, get fully up-to-date with their US filing requirements.

The Streamlined Foreign Offshore Procedure

Generally the most beneficial way for US taxpayers living overseas to bring their affairs up to date is to use the Streamlined Foreign Offshore Procedure (SFOP). The SFOP procedure is available to US taxpayers living overseas who were unaware of their potential reporting and filing requirements and have spent limited time in the US in the three years prior to filing.

The SFOP procedure requires the US taxpayer to file their last three years’ Tax Returns and their last six years’ FBARs, supported by a statement to certify that the non-compliance was due to non-wilful conduct.

If you are eligible to use the SFOP procedure you will not be subject to any of the various penalties associated with late filing listed above.

Other Procedures

If you are not eligible to use the SFOP there are a number of alternative procedures available which can make getting US tax affairs up to date easier. We can analyse and determine which procedure best suits your individual circumstances making the ‘catch up’ as efficient and stress free as possible.

Obtaining a US Social Security Number

You will be required to obtain a Social Security Number (SSN) to file your US Tax Return.

If you have been living abroad from a young age or for any other reason do not have a SSN, we can assist you with your application guiding you as to when and where the application should be filed and what information may be required in order for your application to be successful.

If you are behind on your filing of your US Tax Returns you should contact us as soon as possible to discuss your situation and how to get up to date with your US tax affairs. You can contact us here.

IRS Enrolled Agent