What is the penalty under the IRS Streamlined Filing procedures?
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It depends where you live. The Streamlined Foreign Offshore Procedures (for those meeting the non-residency test) carry a 0% miscellaneous offshore penalty. The Streamlined Domestic Offshore Procedures (for US residents) carry a 5% penalty on the highest year-end aggregate balance of your foreign financial assets in the covered period.
Who qualifies for Streamlined Foreign Offshore (0%)?
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US taxpayers who meet the non-residency requirement — broadly, in at least one of the last three years they had a foreign abode and were physically outside the US for at least 330 days. Americans genuinely living in the UK often qualify, which means a 0% penalty rather than 5%.
How is the 5% Streamlined Domestic penalty calculated?
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It is 5% of the highest year-end aggregate balance of your foreign financial assets across the covered tax years (the six FBAR years and three return years). It is a one-time penalty, not per year, and this calculator applies it to the balance you enter.
What do the Streamlined procedures require me to file?
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Three years of amended or delinquent tax returns, six years of delinquent FBARs, payment of any tax and interest due, and a signed certification that your failure to comply was non-willful. Both the foreign and domestic programs share these core requirements.
What does 'non-willful' mean for Streamlined eligibility?
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Non-willful conduct is a failure that resulted from negligence, inadvertence, mistake or a good-faith misunderstanding of the law — not a deliberate choice to hide accounts. The certification is signed under penalty of perjury, so it must be accurate; if your conduct may have been willful, this is not the right route.
Can I use Streamlined Filing if my conduct was willful?
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No. The Streamlined procedures are only for non-willful taxpayers. If there is any risk your conduct was willful, filing under Streamlined can be dangerous, and a different route such as the IRS Voluntary Disclosure Practice may be appropriate. Take advice before you file anything.
How much can Streamlined Filing save me?
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Often a great deal. Compared with FBAR exposure — up to $10,000 per year non-willful, or the greater of $100,000 or 50% of the balance if willful — a 0% or 5% Streamlined penalty is usually a fraction of the cost. That gap is the whole point of the program.
Do I have to pay back tax under Streamlined Filing?
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Yes. You pay any US tax and interest due on the previously unreported income for the three covered return years. The miscellaneous offshore penalty (0% or 5%) is separate and is charged on the asset balance, not on the tax. Together they are still normally far less than the alternative penalties.
Which foreign assets count towards the 5% penalty base?
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Broadly, foreign financial assets that were not reported, or that generated unreported income, or that were in accounts that should have been on an FBAR or Form 8938. Which specific assets are included can be nuanced, so the base for the 5% penalty should be confirmed carefully before filing.
Is there a deadline for Streamlined Filing?
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There is no fixed statutory deadline, but the program is only available if you come forward before the IRS contacts you about the non-compliance. The IRS has also signalled that Streamlined will not last forever, so acting sooner protects both your eligibility and your cost.
How does Streamlined Filing work for a US citizen in the UK?
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Most Americans living in the UK who genuinely meet the non-residency test use the Streamlined Foreign Offshore Procedures and face a 0% penalty — filing three years of returns (usually with the Foreign Tax Credit removing most US tax) and six years of FBARs. Done correctly it resolves years of non-compliance cleanly.
Should I use this calculator or get advice?
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Use the calculator to understand the likely program and penalty, then get advice before filing. The non-willful certification, the choice of program, and the penalty base all carry real consequences, and a mistake can be costly. Book a consultation to have your case reviewed properly.
