Beginning September 1st, some taxpayers living abroad who have not filed tax returns will get help from the IRS, if little or no back taxes are due. This is a great relief to taxpayers who have lived overseas and have failed to file timely tax returns or Reports of Foreign Bank and Financial Accounts (FBARs). In many cases, the taxpayer is unaware of the FBAR requirement and the associated penalties which are disproportionate to the potential harm to the government for the taxpayer’s failure to file particularly if little or no additional tax is due.

If a taxpayer is considered a low compliance risk, he or she may now get into compliance without penalties and without being subject to additional IRS enforcement action. Typically, the taxpayer will not have complex tax returns and will owe $1,500 or less in a given year. There is no protection from criminal prosecution under this program therefore a careful analysis is required.

Contact our office to learn how this program may affect you.