IRS Streamlined Filing: catch up on missed U.S. returns

Many U.S. citizens and green card holders in Canada — and many Canadians who spent years in the U.S. — are behind on U.S. tax filings without realizing it. The IRS created the Streamlined Filing Compliance Procedures exactly for this: a way to become compliant with reduced (and in most cases zero) penalties.

Who qualifies

• You have missed one or more U.S. tax returns or FBAR filings.
• Your failure to file was non-willful — ordinary negligence, not deliberate avoidance. Living in Canada, filing Canadian returns on time, and not knowing U.S. filing duties are typical non-willful facts.
• You have a valid reason to certify, documented in a short questionnaire statement.

What you must submit

• The last three years of delinquent U.S. tax returns (1040s), properly prepared with treaty and foreign-tax-credit positions.
• The last six years of FBARs (FinCEN Form 114).
• A signed certification of non-willfulness explaining why the filings were missed.

What it costs

For U.S. residents abroad (the "Streamlined Foreign Offshore" stream), the failure-to-file and FBAR penalties are waived entirely in most accepted cases — you pay only any tax and interest actually owing, which for many people in Canada is zero or near zero once foreign tax credits are applied, because Canadian tax paid usually exceeds U.S. tax on the same income.

Why professionals prepare it

The certification statement is the heart of the submission — it must be truthful, specific, and consistent with the facts visible in your filings. The returns themselves must carry the right elections (treaty-based RRSP deferral, foreign tax credit computation, TFSA/RESP analysis). A poorly assembled streamlined package can be rejected or, worse, invite scrutiny.

Alternatives, briefly

• If only an FBAR was missed and no income tax return was required, there is a simpler delinquent FBAR procedure with a reasonable-cause statement.
• If returns were required and were simply late, ordinary late filing may suffice — streamlined is not always necessary.
• Delinquent treaty-based returns (e.g., pure treaty elections) have their own path.

We assess which route fits your facts, then prepare the full package — returns, FBARs, and certification — and submit it to the correct IRS address for the streamlined program.