# Streamline Cost



## Frenchincali (Feb 11, 2018)

Hello all, 
I am a Green Card holder, moved to the US in 2010 from France.
I filled my taxes every year but:
- never reported french bank accounts: around $230k
- never reported my rental income from French property: around $20k per year + interest around $2k/year.
As I thought they were independent from my US taxes.

I have been talking to different professionals to help me get back in line through the Streamline Process; which seems to be the best fitted.

Attorney starting fee: $8,500
Accounting Company expat specialist: $5,500
Following these consultations I browsed some online expat tax specialists and their cost is around $1500 flat fee for the streamline/FBAR (3 years filling + 6 years). I'm not sure that will include adding foreign income though; I will inquire.

I like the accounting company but felt the cost was quite high.
Besides doing it alone, which I'd like to avoid, what are the experiences from forum users in cost/results depending on the firm/accountant used?
Thank you!!! Merci!!!


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## Bevdeforges (Nov 16, 2007)

Basically, you're going to be filing amended tax returns for the relevant time periods (which will involve paying the interest on the undeclared income). Though, if you use paid tax professionals, I suppose they will have to review the original filings to make sure they are complete.

The FBARs (to declare your French accounts) are pretty simple to do yourself.

It's up to you if you want to hire someone to do this for you, but if you initially filed your own returns, you could probably do the amendments yourself.

Ultimately, you're the one responsible for the returns. And as far as "results" are concerned, when filing streamlined, they just accept your back filings. You don't get a statement of any kind that everything is OK (or not). 

I would check out the online folks and see if you can bring the fee down a bit, given that you'll only be filing amendments for the prior 3 years, not from scratch returns.
Cheers,
Bev


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## Frenchincali (Feb 11, 2018)

Bev, 
Thank you very much for the very prompt reply; much appreciated. As everybody here I'm sure knows, all this is pretty stressful and scary and I feel some of the professionals might be playing on that with high fees which doesn’t help to make a decision. Are we really paying for a better knowledge and service or are we just getting taken advantage of and wasting more money…

I mentioned the “results” and was hoping for some feedback maybe from users having used an online service (like Bright!Tax, Taxes for Expat, Expatriate tax returns…) to see if they were happy with the services. I understand your point about not getting feedback/results from IRS; unless it triggered an audit.

Could you please confirm that when you say “Basically, you're going to be filing amended tax returns…” you mean through the streamline process, correct?

Yes, I am ready and ok with paying interest and penalties on unpaid income (foreign income and interests). 
I will also have to pay the 5% penalty for the highest amount held on the foreign bank accounts during the 3 previous years for a total around $11k.

I will check with the online firms as you mentioned. The only thing “tricky” I think about my case is on filing the income from the foreign rental property. Plain income some years and a couple of years had rental expenses higher than rental income which should offset the amounts due. I need to verify they will be able to file that properly. Is that considered tricky or it’s pretty straightforward to do?
You don't think it's necessary to get with a company specialist of US/French taxes in my case?

I have to say I’ll feel a lot better when this is done with and behind me.
Thank you! Merci!


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## Moulard (Feb 3, 2017)

Another thing to bear in mind is that you will have paid French taxes on your French sourced income (interest and rental income). Thus you will be able to claim a Foreign tax credit on that income. I am assuming that under the US-France tax treaty, France would have primary taxing rights on French sourced income.

You will also be able to deduct expenses associated with your addition potentially including any property and real estate/rates type taxes.

If you are lucky, you may well find that you owe little or no US tax... which would reduce any penalty and/or interest due on the unpaid tax.


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## Frenchincali (Feb 11, 2018)

Moulard, thank you for your reply. Yes I paid some french taxes that could help reduce the blow a little but the majority of them are not considered taxes that can be deducted unfortunately.


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## Abello (Apr 10, 2020)

Hello Frenchincali,

I was wondering if you had any update on the streamline process! Thank you


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## Bevdeforges (Nov 16, 2007)

Abello said:


> Hello Frenchincali,
> 
> I was wondering if you had any update on the streamline process! Thank you


Not sure what you're looking for here, but the streamline process hasn't changed much in the last couple of years and with all the current fuss and feathers over those economic impact statements isn't likely to change much for the foreseeable future. 

The information is here: https://www.irs.gov/individuals/international-taxpayers/streamlined-filing-compliance-procedures


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## Abello (Apr 10, 2020)

Thank you Bev, it is very kind of you to reply. 
I was just wondering how the streamline process went for the people who have posted here as it appears ,as I was going through the posts, that people don't come back to give an update. Though I assume that it might mean that it went well if they don't come back with questions etc


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## Abello (Apr 10, 2020)

Did you yourself get any feedback from those who have posted here?


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## Bevdeforges (Nov 16, 2007)

No, we don't normally hear much back from those who do the streamlined thing. But I did help a friend do her streamlined filings - a good year or more ago now. The annoying bit is that once you send all the stuff in, you really don't get any sort of acknowledgment. So it's quite literally a case of "no news is good news."

Such are the ways of the IRS, I guess.


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## Abello (Apr 10, 2020)

Thanks again Bev, I so appreciate your replies. 

I wonder if you have a piece of advice: I have been struggling about what to write on the form 14654 - they ask for details of investments/deposits/ withdrawals etc... but my money (~65K) has been sitting on savings accounts - it is money I received from my parents throughout the years, they are even the ones (my parents) who originally opened an account for me in the bank when I was a child. So it is pretty straightforward!!! 
Thanks


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## Bevdeforges (Nov 16, 2007)

For that 14654 form, I'll give you the same advice I've given everyone else I have helped with that one - keep it short and simple (oh, and truthful). They imply that they want your whole life story. Don't give it to them. 

Tell them no more than what you've just indicated here - savings accounts, much of it money given to you by your parents, and that's it. In fact, I probably wouldn't give them that much detail, but you have to decide what you're comfortable with. Depends a bit on what you're using as your "excuse" for not having filed - whether it's "I didn't know I had to" or "I kind of forgot about it after I moved over here." Just keep it simple and direct.

They are actually after those folks with huge investment accounts - millions of $$. These days a measly $65K in a savings account doesn't generate much of anything in interest (what? maybe $65 at a whopping 0.1% interest) so you really have little to "explain" or apologize for. Despite everything they imply, there is little or no information readily available outside the US about US tax filing requirements - unless you seek out the information.


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## Abello (Apr 10, 2020)

Thank you Bev, I so appreciate your input  
I will keep it simple indeed. Really it's when the Bank asked me for a W9 (I had no idea what it was) that I became aware of the requirements etc. I'll say that too. 
I hope you are well and healthy given the circumstances of sheltering in place etc...


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