Streamlined Filing for US Taxes

Streamlined Filing for U.S. Taxes: What You Need to Know

What Is Streamlined Filing?

The IRS Streamlined Filing Compliance Procedures were created to help U.S. citizens and green card holders living abroad catch up on their U.S. tax obligations without facing the usual harsh penalties.

Many Americans abroad don’t realize they must continue filing annual tax returns and reports of foreign financial accounts, even if they haven’t lived in the U.S. for decades. Read more in our blog by clicking here.

Streamlined filing is designed for taxpayers who failed to file because of non-willful conduct (meaning they didn’t intentionally try to avoid their obligations).

Who Qualifies for Streamlined Filing?

You may qualify if:

  • You are a U.S. citizen, green card holder, or U.S. resident alien living abroad

  • You have failed to file U.S. tax returns or FBARs (Foreign Bank Account Reports)

  • Your failure to file was non-willful—an oversight or lack of knowledge

What’s Required Under Streamlined Filing?

To get back into compliance, the IRS requires:

1. Three Years of Tax Returns

You must file the last 3 years of U.S. tax returns (Form 1040), including all required schedules and forms.

2. Six Years of FBARs

If you had more than $10,000 in foreign accounts at any point during the year, you must file 6 years of FBARs (FinCEN Form 114).

3. Certification of Non-Willful Conduct

You must submit Form 14653 (for expats) certifying that your failure to file was due to non-willful reasons.

Why Consider Streamlined Filing?

  • Avoid penalties: Offshore penalties for unreported accounts can be severe, but streamlined filing usually eliminates them.

  • Protect your finances: Filing ensures compliance with U.S. tax law and helps avoid future IRS issues.

  • Peace of mind: Once you’re caught up, you can stay compliant moving forward with much less stress.

Common Misunderstandings About Streamlined Filing

“I don’t owe U.S. tax, so I don’t need to file.”

Even if you owe nothing (due to foreign tax credits or exclusions), you must still file.

“I’ve been abroad too long, the IRS won’t notice.”

With global financial reporting, foreign banks often share information with the IRS.

How a Modern Axis CPA Can Help With Streamlined Filing

The streamlined filing process requires careful preparation. Missing forms, errors, or misunderstanding eligibility could cause problems.

A Chartered Professional Accountant (CPA) with cross-border expertise can:

  • Review your tax situation and determine eligibility

  • Prepare and file the required returns and FBARs

  • Ensure you maximize credits and exclusions to avoid double taxation

  • Guide you through certification to ensure your filing is accepted

At ModernAxis, we assist clients in Victoria, BC and across Canada with cross-border U.S. tax compliance. Streamlined filing can be daunting, but having a professional by your side makes the process much smoother.

Final Thoughts

If you’re a U.S. citizen abroad who has fallen behind on tax filings, streamlined filing offers a practical path to compliance without the heavy penalties. Acting sooner rather than later is best, especially as global reporting continues to tighten.

Need help navigating the process? The team at ModernAxis can walk you through streamlined filing, ensuring accuracy, compliance, and peace of mind.