Filing Back Taxes & Other Non-Compliance Matters

Many Americans abroad are unaware that they still need to file taxes in the US and report foreign financial accounts via FinCen114 (FBAR).

But neglecting your US taxes can turn into a major hassle down the road. If you haven’t filed and need to file back taxes, don’t put it off! If the IRS discovers your non-compliance, you may face severe penalties and interest. The US can even refuse to renew your passport or detain you at the border if you owe significant back taxes.

While this may sound scary, there are options available in order to get you back into compliance. Coming forward voluntarily and tackling back taxes with the help of experts may allows you to minimize or avoid penalties.

There are three main options for filing late taxes:

  • IRS Streamlined Program

    This program is available to filers who are considered low risk. It requires filing 3 years of back taxes, and 6 years of FBAR filings, and signing a sworn affidavit. The penalties for late filing on both the returns and FBAR will be waived under this program, although you will have to pay interest on any tax due.

  • Offshore Voluntary Disclosure Program

    The IRS ended the OVDP on Sep 28, 2018. This program was the most comprehensive and was designed for individuals that had significant assets, income, entities, or other foreign interests to disclose.

  • Quiet disclosure

    As you may have guessed, this is not an official IRS program. It generally involves filing at least 3 years of back taxes and 6 years of FBAR without formally notifying the IRS. While this sounds simple, it may put you at greater risk of further scrutiny and provides no waiver of penalties.

With the closure of the Offshore Voluntary Disclosure Program in 2018, you can still use the Streamlined Program or file missing returns quietly. Each approach has unique requirements, as well as pros and cons. We can walk you through each option, explain how it would apply to you, and help you choose the one that best fits your specific tax situation.

During the consultation we assess your tax situation and will provide you with a quote. Our transparent pricing means you won’t have any surprises. We even offer audit protection for your full peace of mind.