I am an American abroad who never filed U.S. taxes. What can I do?

Establish what was actually required

Start by reviewing each year rather than assuming citizenship automatically required the same set of filings annually. Determine filing thresholds, self-employment income, foreign accounts and ownership of foreign entities or trusts. Identify original returns already filed, any omitted income and any IRS notices. Foreign tax credits or exclusions may reduce the income tax due, but they do not necessarily remove information return obligations. Keep records from earlier years even if a particular compliance procedure requests a shorter submission period.

Streamlined foreign offshore eligibility is specific

The Streamlined Foreign Offshore Procedures generally require nonwillful failures, a valid taxpayer identification number and satisfaction of the program’s nonresidency rules. For a U.S. citizen or lawful permanent resident, those rules generally require that in at least one of the three relevant years you had no U.S. abode and were physically outside the United States for at least 330 full days. Other taxpayers have a different nonresidency test. Married joint filers must both meet the applicable nonresidency requirement. Living abroad today is not enough by itself.

The submission is more than late returns

A qualifying streamlined foreign submission generally includes three years of delinquent or amended income tax returns for the covered years, all required information returns with them, six years of required delinquent FBARs, and payment of tax and interest. Form 14653 includes a signed certification explaining the nonwillful conduct. Nonwillful means conduct due to negligence, inadvertence, mistake or a good-faith misunderstanding of the law. The narrative must be truthful, complete and consistent with the records; it is not a template statement that everyone can sign.

Other situations need another route

A taxpayer under an IRS civil examination is generally ineligible for streamlined procedures, and willful conduct needs a different analysis. If the facts may involve intentional concealment or criminal exposure, consult qualified tax counsel before making a submission. Separate delinquent FBAR procedures may fit narrower cases where income was properly reported and tax paid. Qualifying streamlined foreign submissions generally avoid specified late-filing, late-payment and information-reporting penalties, but the IRS can review eligibility and the certification. No adviser can guarantee acceptance or blanket relief.

Common mistakes

• Assuming every overseas taxpayer qualifies for streamlined treatment.
• Submitting a nonwillfulness certification without reviewing the complete facts.

Filing requirements

• Confirm the exact covered years under the procedure before preparing the package.
• Coordinate income tax returns, information returns, FBARs and tax-and-interest payments.

Potential penalties

• Penalty relief depends on the selected procedure and eligibility; outside it, separate penalties may apply.

Related IRS forms

• Form 1040
• Form 14653
• FinCEN Form 114 (FBAR)

What to consider next

• Collect past returns, account statements, travel records and IRS correspondence.
• Prepare a factual timeline of when and how you learned of the requirements.
• Have Chirino USA assess the available compliance route before you submit.