Almost every catch-up call I take starts with the same question: “Can I still fix this without a penalty?” Often the answer is yes, through the IRS Streamlined Foreign Offshore Procedures. But the procedure is only open to people who pass three tests, and I would rather you know whether you pass before you spend anything.
The three tests I check first
- Was the miss non-willful? Negligence, a mistake, or a good-faith misunderstanding of the law all count. Not knowing that US citizens abroad file every year is the most common example. A decision to avoid US tax, or to keep an account out of view, does not.
- Were you abroad for 330 full days? You need no US abode and at least 330 full days outside the US in at least one of the last three years whose due date has passed.
- Has the IRS already contacted you? If the IRS has opened a civil examination of your returns for any year, or a criminal investigation, this route is closed.
The 330-day test is where people trip
The test looks at one year, not all three. If you meet it in any one of them, the returns you file still cover all three. A full day runs midnight to midnight, so the day you land and the day you leave do not count. That leaves room for about 35 days that are not full days abroad.
A teacher who spends a month at home each summer still clears it. One who spends the whole summer there, eight weeks or more, does not in that year, though another of the three years may. Keeping a house in the US does not by itself put your abode there. It depends on where your life is centred.
What you file if you qualify
- Three years of tax returns, with any information returns your facts require, such as Forms 3520, 5471 and 8938
- Six years of FBARs
- Form 14653, the signed statement that you are eligible and that the miss was non-willful
The returns go in on paper, marked “Streamlined Foreign Offshore” in red at the top of the first page. You pay all tax and interest with the submission. For a qualifying filer, the failure-to-file, failure-to-pay and FBAR penalties are not charged. If the statement is missing or incomplete, the returns are processed as ordinary late returns without the relief.
If you fail one of the tests
- Under examination, or the miss was willful. These procedures are closed. Speak to a tax attorney first. If that is you, I will tell you on the first call.
- Under 330 days abroad in every one of the three years. The Streamlined Domestic Offshore Procedures exist for you, with a penalty of 5% of the highest aggregate year-end balance of your foreign assets. It is a different cost and a different decision.
- Hoping the Delinquent FBAR route is still open. It is not. The IRS ended those procedures in July 2026.
Not sure where you stand?
Fifteen minutes with me is enough to tell you which tests you pass. If Streamlined is closed to you, you will hear that first, before you pay for anything: jorgerivas.pro/contact. You can also walk through the same questions yourself with the free Streamlined decision tree on my practice site, which then shows the years a submission covers and the penalty on your own balance.
If you have missed a deadline for other reasons, my guide on a missed tax deadline abroad and the full guide to who qualifies for Streamlined cover the related cases in more depth.
Questions I get
Do I need to have been abroad for all three years?
No. One qualifying year out of the last three is enough.
Does Streamlined cancel the tax I owe?
No. Tax and interest are still due. What is waived, for qualifying filers, is the penalties.
Can I use it if I knew I had to file and did not?
No. Choosing not to file is willful, and that case belongs with a tax attorney.
General information, not tax advice. Sources: IRS, Streamlined Foreign Offshore Procedures and Streamlined Domestic Offshore Procedures (updated July 2026); Form 14653 and its instructions; IRS Publication 54 on abode and the physical presence test. Checked 29 October 2026.