What if I have multiple years of unfiled returns?

Having multiple years of unfiled returns is more common than you might think among US expats, and it is a situation we handle regularly at Zenith Financial. The key is to take action rather than continuing to avoid the problem, as the penalties and interest grow larger with each passing year.

For most expats with multiple unfiled years, the IRS Streamlined Filing Compliance Procedures provide the best path back to compliance. Under this program, you file the last 3 years of tax returns and the last 6 years of FBARs. For qualifying taxpayers living abroad, all penalties are waived. This is the most favorable resolution program the IRS offers.

The Streamlined Procedures require a certification that your failure to file was non-willful — meaning it resulted from ignorance, negligence, or a good-faith misunderstanding of the requirements. Most expats who were simply unaware of their US filing obligations qualify for this standard.

Our process for multi-year filings involves: an initial assessment to determine which compliance program is appropriate; gathering information and documents for all required years (we understand that records from older years may be incomplete and can work with available information); preparing all returns and FBARs simultaneously to ensure consistency and optimal strategy across years; filing all returns together as a package with the appropriate IRS submission center; and monitoring for any IRS responses and handling any follow-up correspondence.

Pricing for multi-year filings reflects the additional work involved, but we offer package discounts when preparing multiple years together. We are transparent about fees upfront so there are no surprises.

The most important step is the first one — reaching out for a confidential consultation. We can assess your situation and recommend the best approach without any obligation. The sooner you act, the sooner you stop the clock on penalties and interest.