Natural light immediately illuminates a room, and in the same way, clarifying your delinquent tax filings can bring transparency to your U.S. expat obligations. If you live in Hong Kong, Macau, or mainland China and have missed your U.S. filing deadlines, understanding the streamlined procedure application steps can help you return to compliance without facing steep penalties. Below is an in-depth look at these steps, along with tips to ensure your filing goes smoothly.

Understand the purpose of streamlined procedures

Streamlined filing compliance procedures allow you to correct past oversights if your failure to file foreign financial accounts or pay taxes was non-willful. Both the Streamlined Foreign Offshore Procedures and Streamlined Domestic Offshore Procedures aim to reduce or eliminate penalties. By demonstrating your non-willful intent, you can catch up on late or incorrect filings with significantly less risk.

  • Designed exclusively for individuals (not corporations).
  • Focus on non-willful conduct: negligence, misunderstanding, or inadvertence.
  • Different versions exist depending on whether you reside outside or inside the U.S.

If you want more background on how these programs serve overseas taxpayers, visit our US tax streamlined procedure page.

Confirm your eligibility

To use the streamlined procedures, you must certify that you acted without willful intent when missing your filings. Depending on your location and residency status, you will follow either the foreign offshore or domestic offshore version.

  • You cannot be under IRS civil examination or criminal investigation.
  • You must have a valid Social Security Number or Individual Taxpayer Identification Number.
  • You are required to submit accurate statements on why you failed to file.

For additional details on eligibility requirements, see our streamlined procedure eligibility criteria.

Gather essential documents

Accurate records are vital for filing under the streamlined procedures. Gathering these documents early will help streamline the process:

  • Bank and brokerage statements for all foreign and U.S. accounts.
  • Wage and tax summaries from employers, if applicable.
  • Prior-year tax returns (U.S. and non-U.S.).
  • Record of any foreign pension or investment holdings.

Stay organized so you can complete the necessary forms without confusion.

File your past returns

Next, you must correct or file three years of tax returns to reflect all foreign income properly. If you already submitted returns with omissions, you will typically file amended returns (Form 1040X).

  1. Complete three years of late or amended U.S. tax returns.
  2. Attach all required information returns (e.g., Form 8938 for foreign assets).
  3. Pay any taxes and interest owed for these years.

For a deeper understanding of the overall filing approach, you can consult our IRS streamlined filing process.

Submit delinquent FBARs

You must also submit any missing or corrected Reports of Foreign Bank and Financial Accounts (FBARs) for the past six years. FBARs (FinCEN Form 114) are filed electronically, capturing details about your foreign bank and financial accounts.

  • File FBARs via the official FinCEN website.
  • Include all foreign accounts over the $10,000 reporting threshold in aggregate.
  • Maintain proof of your submissions for future reference.

If you are concerned about potential penalties for late FBAR filing, you may want to see whether the IRS late filing penalty waiver applies to your situation.

Draft your non-willful statement

A critical element of the streamlined procedure application steps is the non-willful certification. You must provide a statement (on Form 14653 for foreign procedures or Form 14654 for domestic) detailing why you missed your filings.

  • Explain specifically how your conduct was non-willful.
  • Describe the circumstances that caused your misunderstanding.
  • Sign under penalties of perjury to affirm your statement’s accuracy.

Submit your application and follow up

Once you complete your documentation, prepare the final package for mailing (for tax returns) or electronic filing (for FBARs). The IRS does not typically send a special acknowledgment. However, if the agency needs clarification, it will contact you directly.

  • Mail the full set of returns, statements, and any tax balance due.
  • Keep copies of every form, certification, and account statement.
  • Monitor your records for at least six to twelve months.

When your streamlined submission is processed, your future filings must remain accurate and timely. For more perspective on benefits, check our expat streamlined program benefits page.

Key takeaways

  • Streamlined procedures were created for expats who missed filings without willful intent.
  • You must file three years of amended or late returns plus six years of FBARs.
  • A non-willful statement is essential to prove your eligibility.
  • Keep careful records and expect routine IRS processing times.
  • Staying compliant in the future will help you avoid further complications.

Frequently asked questions

  • Do I qualify if I am under examination?
    No. You are ineligible if the IRS has already initiated any civil examination or criminal investigation.
  • Do I need a U.S. address to use the streamlined foreign offshore procedures?
    No, but you must meet the 330 days abroad requirement in at least one of the last three tax years.
  • Will I need to pay penalties?
    If your conduct was non-willful and you follow the procedures correctly, you generally avoid most penalties. However, domestic filers typically face a 5% offshore penalty.
  • How long does the process take to complete?
    The IRS usually takes six to twelve months to review your submission, but timelines can vary.

Moving forward

Addressing your past tax obligations is a serious matter, and completing the streamlined procedure application steps properly can offer peace of mind. If you would rather focus on your life abroad while professionals handle the complexities, our team at American Pacific Tax can help. Explore expat IRS compliance solutions or contact us today for personalized assistance. Our goal is to ensure you resolve your outstanding filing requirements and remain compliant in the years to come.