Missing returns won't be repaired by opening a new account or forming another company. US citizens abroad generally remain subject to US income tax on worldwide income; put your filing history in order before choosing a correction route. 1

This is general information. Your CPA and counsel confirm the details for your case.

The streamlined procedures are one possible route. They aren't automatic permission to submit anything late without consequences. A concern about willfulness or an existing investigation needs a qualified tax lawyer's review before submission. The explanation you give must match what happened.

Who the streamlined procedures are for

The IRS streamlined procedures, updated in July 2026, are available to individual taxpayers, and their estates, who certify that failures to report foreign financial assets and pay tax didn't result from willful conduct. The IRS defines non-willful conduct as negligence, inadvertence, mistake or a good-faith misunderstanding of the law. The procedures were first offered in September 2012 and later expanded. 2

That definition isn't a label to select because it produces the preferred result. Document what you knew, which records you had and what you did. Establish the history before drafting the certification. Don't leave an awkward fact out of the account and expect the professional review to remain reliable.

The IRS says taxpayers under civil examination for any year, or under criminal investigation, are ineligible. A valid taxpayer identification number is required, including a Social Security number for citizens. Put any IRS contact at the beginning of your brief so eligibility is checked before anyone prepares a package. 2

The foreign offshore route has its own residence test

Under the Streamlined Foreign Offshore rules, a US citizen or green-card holder must, in at least one of the latest three years whose return due date has passed, have had no US abode and been physically outside the US for at least 330 full days. For joint filers, both spouses must meet the test. 3

Don't assume that having a foreign address today establishes this earlier-year condition. Assemble the travel and residence evidence for the relevant period. Apply this program's own eligibility test. Similar day counts elsewhere in tax law don't make the procedures interchangeable.

Which years and documents are involved?

The foreign offshore instructions call for delinquent or amended returns for the most recent three years whose due dates have passed, including required information returns. These include Forms 3520, 5471 and 8938. They also call for delinquent FBARs for the most recent six years whose FBAR due dates have passed. 3

Make one timeline and mark the return and account-reporting periods separately. Establish which years are included based on the actual deadlines. A list of calendar years selected from memory is not enough when the procedure defines its scope by due dates.

The instructions require signed Form 14653 certifying non-willful conduct, payment of tax and statutory interest, and a paper return package marked “Streamlined Foreign Offshore” in red. FBARs are submitted electronically using the streamlined-procedure reason for late filing. Check the current submission instructions before anything is sent. 3

Relief has conditions, and a submission can be audited

The IRS says taxpayers who fully comply with the foreign offshore procedures aren't subject to the listed failure-to-file, failure-to-pay, accuracy-related, information-return or FBAR penalties, unless an audit finds fraud or a willful FBAR violation. That is conditional program treatment. It isn't a guarantee that any late submission qualifies for relief. 3

The IRS says returns are processed like other returns, there is no closing agreement, and they may still be selected for audit. Previously assessed penalties on quiet disclosures won't be abated. Keep the underlying evidence after filing; submission doesn't close the possibility of an examination. 2

The domestic offshore procedure is different. The IRS specifies Form 14654 and a 5% miscellaneous offshore penalty based on the highest aggregate year-end balance or value of covered foreign financial assets. Don't borrow the foreign procedure's treatment if the domestic procedure is the relevant one. 4

What this means for you

A correction plan starts with complete facts about the missing years and why the filings were omitted. Establish eligibility before choosing streamlined procedures. A clear account of the history lets your professionals evaluate the route without discovering critical details after submission.

What to do this month

  • Build a year-by-year list of filed returns, missing information forms and FBARs. Add the dates of any IRS contact at the beginning of the file.
  • Recover the account and income records needed for the relevant periods. Mark missing evidence clearly instead of filling the gaps from memory.
  • Write an accurate account of what happened and what you knew at the time. Resolve the eligibility and conduct questions before anyone drafts your certification.
  • Agree the filing route, payment calculation and document-retention plan. Keep copies of the complete submission and confirmations so future preparation starts from a clear record.

Common mistakes to avoid

  • Treating non-willfulness as an assumption rather than a certification to examine.
  • Ignoring an examination or investigation when checking eligibility.
  • Confusing the three return years with the six FBAR years.
  • Assuming submission means you can no longer be audited.

Where your conduct may have been willful, the IRS directs taxpayers toward its Criminal Investigation Voluntary Disclosure Practice. Establish the appropriate route before filing. A complete history is essential to that decision; a hurried submission cannot replace it. 2

The FNC angle

If you're considering new banking or company arrangements, include unresolved compliance work in the planning brief. FNC can discuss the practical structure you're trying to build while your CPA assesses the correction route. Keep those responsibilities clear. A new structure should not be presented as a cure for missing historical filings.