# Streamlined Filing or Just Filing for Past Years



## wdg (Apr 15, 2017)

I have been living in Japan for 10 years and have never filed my taxes (I was claimed as my mother's dependent until I was 24, and came to Japan the next year).

I am trying to file now, and have the Streamlined Filing packet pretty much ready to go thanks to some last-minute help from people on this forum.

But this Statement on Form 14653 is scaring me. Would it just be safer if I file back years and not use the Streamlined Filing Procedures? How many years would I have to back file? 6? all 10? I would be way below the Foreign Earned Income Exclusion for all 10 years, so I do not owe any money, but would I be charged late penalties?


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## Bevdeforges (Nov 16, 2007)

A big thing to realize is that any "late filing penalties" are based on a percentage of the taxes due for the year(s) you filed late (plus interest on the amounts that were paid late). If you owed nothing all these years, then there are no penalties for filing late.

Also, consider the difference between "just filing late" and going the streamlined route. The streamlined program allows you to file current year plus 3 years back, and if you show that you owe(d) little or nothing, then you're basically exonerated for any years prior and can go forward in peace, just filing one year at a time.

Filing late will clear you for the years for which you file - however, take into consideration the filing thresholds and you actually do not need to have filed for any years in which your gross income was less than the threshold for your filing status (i.e. single, married filing separately, head of household or whatever).

Now comes the "risk analysis" part of the equation... if you back file a few years late, is there any reason for the IRS to know whether or not your foreign income in the prior years was above the filing threshold or not? Obviously any US source income they will have information about. But their sources for foreign income are very few and far between. And in any event, if you clearly owed no US tax in prior years, they aren't going to waste their time and energy to "investigate" if it's not going to yield them any additional taxes.
Cheers,
Bev


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