# Streamlined Foreign Procedure advice



## iweb* (Mar 8, 2016)

Hi,

I recently discovered as an American dual citizen living abroad I am to file taxes to the IRS and am seeking to become compliant. I have done a lot of research but have some questions if anyone would be willing to help me.

About me:

- Born in US, lived in UK 23 years (have US and Irish passports)
- I've been working full time for the past 4 years earning approx $37,000 per annum
- Married to a non-US citizen since 2013 (she's Irish)
- We currently have a total approx $28,000 in savings equally stored in a UK ISA and in UK Premium Bonds
- I don't have a pension fund/trust fund
- I don't own any considerable assets i.e. haven't yet bought a house
- I studied in Edinburgh and have a student loan that I pay to the UK government

Questions:

1. I am to file 1040 for the past 3 years (2012,2013,2014). Am I also to file a 3520, 5471, 8938? I have looked at these and they don't seem relevant to me as I don't have a pension/trust fund, lucrative assets etc.

2. Would I include my 2015 tax return in the Streamlined procedure or file this separately? Are there any different forms that need filed for the current tax year? I.e. Form 2555 

3. Should I attach a form 2555 to each 1040 for the Streamlined Process or should this only be used in the current tax year? And are there any other forms I may have missed?

4. Should I be filing anything for my NRA wife? She is currently a student studying nursing with a small income from a part-time job.

5. I have only had savings above $10,000 from 2012 onwards. Do I need to file FBAR's for 2009,2010,2011 in that case?

6. Is there a software anyone would recommend that might help me with this process. I don't mind paying (as long it's not the crazy amount I've been quoted by accountants).


HUGE thanks to anyone who could give any advice. It's very, very much appreciated.

Kind regards.


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## BBCWatcher (Dec 28, 2012)

iweb* said:


> 1. I am to file 1040 for the past 3 years (2012,2013,2014). Am I also to file a 3520, 5471, 8938?


No on 8938 since you don't meet the filing threshold. Almost certainly not 5471. (Just look at the title. It seems pretty far fetched for you.) 3520 is a little more possible.



> 2. Would I include my 2015 tax return in the Streamlined procedure or file this separately?


Separately. It's not due yet. File IRS Form 4868 to get a filing extension.



> Are there any different forms that need filed for the current tax year? I.e. Form 2555


Yes, and/or 1116. Schedule B is quite popular, and you'll probably have an 8965. But have you looked into using tax preparation software?



> 3. Should I attach a form 2555 to each 1040 for the Streamlined Process or should this only be used in the current tax year?


Every year you're taking the Foreign Earned Income Exclusion. Short answer: yes.



> 4. Should I be filing anything for my NRA wife?


No.



> 5. I have only had savings above $10,000 from 2012 onwards. Do I need to file FBAR's for 2009,2010,2011 in that case?


No.



> 6. Is there a software anyone would recommend that might help me with this process.


Take a look at the top "sticky" thread for some recommendations. TaxAct is affordable and pretty good for past tax years.

The only "interesting" thing I see is your savings/investments. FinCEN Form 114 is easy, but the IRS side is a little more interesting. Exactly how they need to be treated will depend on three major factors: how are they constructed (custodian, etc.), what they hold, and whether the U.S.-U.K. tax treaty has something to say about them. That's probably the one area where you'll have to do a little more investigation, in particular to figure out whether they're a foreign trust and/or PFICs.


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## Bevdeforges (Nov 16, 2007)

Two supplementary comments here:

Certain forms (like 2555 and 1116) are elections, not obligations. You choose how to treat certain elements of your tax returns and you add the forms to reflect those elections.

Take a look at IRS publication 54 for a good overview of how all this stuff works when you're filing from overseas: https://www.irs.gov/publications/p54/
Cheers,
Bev


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