Many US citizens who move to France discover, sometimes years after relocating, that they were required to file annual US tax returns and report foreign financial accounts throughout their time abroad. The discovery is often made when opening a new French bank account (where the W-9 form and FATCA questions arise), when consulting a tax professional for the first time, or when considering renouncing US citizenship.
The IRS Streamlined Filing Compliance Procedures provide a structured path to compliance for US citizens who have failed to file returns and FBARs for non-willful reasons. The program does not require a negotiation with the IRS or a special application. A qualifying taxpayer files the required documents, certifies non-willfulness, pays any taxes owed, and re-enters the normal filing system going forward. No offshore penalties are imposed.
The threshold question is willfulness. The Streamlined program is available only to taxpayers whose failure to comply was non-willful. A taxpayer who knew about the filing obligation and chose not to comply does not qualify. The certification of non-willfulness is made under penalty of perjury. An incorrect certification does not provide protection and may itself create additional legal exposure.
The Two Streamlined Programs
| Feature | Streamlined Foreign Offshore (SFOP) | Streamlined Domestic Offshore (SDOP) |
|---|---|---|
| Who qualifies | US citizens and resident aliens meeting the non-residency test | US residents who failed to report foreign accounts or assets |
| Non-residency test | Physically outside the US for 330+ full days in at least one of the three relevant years; no US abode | Not applicable |
| Returns required | 3 years of original or amended federal tax returns | 3 years of amended federal tax returns |
| FBARs required | 6 years of delinquent FBARs | 6 years of delinquent FBARs |
| Miscellaneous offshore penalty | None | 5% of the highest aggregate unreported foreign financial asset balance during the 6-year FBAR period |
| Certification | Form 14653 | Form 14654 |
US citizens living in France who have not maintained a US abode during the compliance period typically qualify for the Foreign Offshore Procedures and are not subject to the 5% miscellaneous penalty.
Eligibility Requirements: Streamlined Foreign Offshore
A taxpayer qualifies for the SFOP if all of the following conditions are met:
1. Non-residency: For any one or more of the three most recent years for which the US income tax return due date has passed, the taxpayer did not have a US abode AND was physically outside the United States for at least 330 full days.
2. Non-willfulness: The failure to report all income, pay all tax, and submit all required information returns (including FBARs) was due to non-willful conduct.
3. Not under examination: The taxpayer is not currently under IRS examination for any taxable year and has not been notified of a pending examination.
What to File
Step 1: Federal Tax Returns (3 Years)
File original or amended federal income tax returns for each of the three most recent years for which the US return due date has passed. The most recent three years as of March 2026 are typically the 2022, 2023, and 2024 tax years (for taxpayers who have never filed) or the three most recent unfiled or incorrectly filed years.
Each return must include:
- All income from all sources (worldwide)
- All required information returns (Form 8938 if applicable, PFIC forms, foreign corporation returns, etc.)
- Form 2555 or Form 1116 if applicable for foreign tax relief
Step 2: FBARs (6 Years)
File all delinquent FBARs for the six most recent years for which the FBAR due date has passed, electronically through FinCEN’s BSA E-Filing System at bsaefiling.fincen.gov. Late-filed FBARs submitted as part of a Streamlined filing should include a statement that the FBARs are being filed as part of the Streamlined program.
Step 3: Form 14653 Certification
Complete and sign Form 14653, Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures. The form requires:
- Certification of non-residency (the 330-day test)
- A narrative explanation of the reasons for the failure to file and report
- Certification under penalty of perjury that the conduct was non-willful
The narrative explanation is critical. It should describe when and how the taxpayer moved to France, why they did not file, and what caused them to become aware of their obligations. A generic narrative that does not address the specific facts is inadequate.
What Qualifies as Non-Willful
Non-willful conduct includes failures due to:
- Unawareness of the US filing obligation after moving abroad
- Unawareness of the FBAR requirement
- Reliance on a tax preparer who did not advise about foreign account reporting
- Reasonable misunderstanding of the law
Non-willful conduct does not include:
- Knowing about the obligation and choosing not to file to avoid tax
- Filing false returns while hiding foreign income
- Deliberately moving assets offshore to avoid US tax
The line between willfulness and non-willfulness is determined by facts and circumstances. “Willful blindness” — deliberately avoiding learning about an obligation — can constitute willfulness even without direct knowledge. A taxpayer who signed US tax returns that included questions about foreign accounts and answered “no” incorrectly has stronger willfulness exposure than a taxpayer who never filed at all.
Penalties Under the Streamlined Program
SFOP: No miscellaneous offshore penalty. Normal late payment interest accrues on taxes owed. Standard accuracy-related penalties (20%) apply if the IRS examines the returns and finds an underpayment due to substantial understatement or negligence.
No protection from examination: Streamlined submission does not guarantee the returns will not be examined. If examined, the IRS can assess additional tax, penalties, and interest. The submission also does not preclude an examination of years outside the three-year window.
Willfulness risk: If the IRS determines that the taxpayer’s conduct was willful, the streamlined submission does not protect against standard FBAR willful penalties or criminal referral. A false certification on Form 14653 is itself a potential criminal violation.
When to consult a specialist: The willfulness determination is the most consequential decision in the Streamlined process. Taxpayers who signed prior US returns with foreign account questions answered incorrectly, who had professional advisors involved in the decision not to file, or who have any uncertainty about whether their conduct falls outside the non-willful standard should obtain legal advice before submitting Form 14653. An incorrect certification does not provide protection and may itself constitute a criminal violation. A qualified US–France tax specialist — and, where criminal exposure is possible, a tax attorney — can assess your specific circumstances. Request Introduction.
After the Streamlined Submission
Following a successful streamlined submission, the taxpayer re-enters the normal compliance system and must file annual returns and FBARs going forward. Maintaining compliance after the submission is required; the Streamlined program is a one-time catch-up mechanism, not a recurring amnesty.
Technical References
Statutory basis for FBAR penalties: 31 U.S.C. §5321 authorizes civil FBAR penalties. Non-willful civil penalties under §5321(a)(5)(A) are assessed per report following Bittner v. United States, 598 U.S. 85 (2023). Willful penalties under §5321(a)(5)(C) are the greater of $100,000 or 50% of the account balance per violation (with inflation adjustments).
Streamlined program authority: The Streamlined Filing Compliance Procedures are established under IRS Internal Revenue Manual 4.63.3. The program is administered by the IRS Large Business and International division. There is no statutory basis for the program; it is an exercise of IRS administrative discretion. The IRS can modify or terminate the program at any time.
Form 8938 statute of limitations: Under IRC §6038D(e), the three-year statute of limitations for assessing tax does not begin to run until Form 8938 is filed. For income omissions exceeding $5,000 attributable to undisclosed foreign financial assets, the statute is six years from the date Form 8938 is filed. Streamlined returns filing Form 8938 for the first time start these statutes running.
Non-willfulness standard: The IRS has provided guidance on the non-willfulness standard in IRM 4.26.16 and through published court decisions interpreting 31 U.S.C. §5321(a)(5). The standard is objective: what would a reasonable person in the taxpayer’s circumstances have known? Willful blindness satisfies the willfulness standard under United States v. Sturman, 951 F.2d 1466 (6th Cir. 1991) and subsequent FBAR cases.
Criminal Voluntary Disclosure: Taxpayers with potential criminal exposure should instead consult the IRS Criminal Investigation Voluntary Disclosure Practice (CIVDP), which requires disclosure to the IRS Criminal Investigation division and provides limited protections from prosecution that the Streamlined program does not offer. Consultation with a tax attorney is required before initiating a voluntary disclosure.
Frequently Asked Questions
Who qualifies for the Streamlined Foreign Offshore Procedures?
US citizens and resident aliens who live outside the United States, have not filed or incorrectly filed US tax returns, and whose failure to comply was non-willful qualify for the Streamlined Foreign Offshore Procedures. The non-residency requirement is met by being physically outside the US for at least 330 full days in any one of the three most recent tax years for which the return due date has passed, without a US abode. Non-willfulness is a required certification.
What does non-willful mean for Streamlined Procedures purposes?
Non-willful conduct is conduct due to negligence, inadvertence, mistake, or a good-faith misunderstanding of legal requirements. Examples include unawareness of the US filing obligation after moving to France, unawareness of the FBAR requirement, and reliance on a preparer who did not ask about foreign accounts. Deliberate non-filing with knowledge of the obligation, and willful blindness to an obvious obligation, do not qualify as non-willful.
What must I file under the Streamlined Foreign Offshore Procedures?
Yes, the filing consists of three components: (1) original or amended federal income tax returns for each of the three most recent years for which the return due date has passed, with all required information returns; (2) all delinquent FBARs for the six most recent years for which the FBAR due date has passed, filed through FinCEN’s BSA E-Filing System; and (3) Form 14653, the certification of non-willful conduct.
Are there penalties under the Streamlined Foreign Offshore Procedures?
No offshore penalties apply to qualifying filers. The standard FBAR non-willful and willful penalties are not imposed. Normal late payment interest accrues on any taxes owed. Standard accuracy-related penalties may apply if returns are subsequently examined and an understatement is found.
What is the difference between Streamlined Foreign and Streamlined Domestic procedures?
The Streamlined Foreign Offshore Procedures apply to US citizens who meet the non-residency test (330 days outside the US with no US abode) and carry no miscellaneous offshore penalty. The Streamlined Domestic Offshore Procedures apply to US residents and impose a 5% miscellaneous offshore penalty on the highest aggregate unreported foreign financial asset balance. US citizens living continuously in France during the relevant period typically qualify for the Foreign Offshore Procedures.
What happens if the IRS later determines my non-willfulness certification was incorrect?
If the IRS determines that the conduct was willful, the Streamlined submission does not protect against standard willful FBAR penalties or criminal prosecution. An incorrect certification on Form 14653, made under penalty of perjury, can itself constitute a criminal violation. Taxpayers uncertain about their willfulness status should consult a qualified tax attorney before using the program.
Can I use the Streamlined Procedures if I have already been contacted by the IRS?
No. The Streamlined Procedures are not available to taxpayers under IRS examination for any tax year covered by the submission, or who have been notified that their accounts or returns are under examination. Compliance must be addressed through other channels for taxpayers in this position.