# Need advice regarding unfilled taxes



## kkiani (Feb 10, 2014)

Hi Everyone -- I am a US citizen living in Pakistan and I have just found out about filling taxes while living abroad. I had to move back to Pakistan in 2007 to help my ailing mother, and I have not returned to US since 2007. I took a teaching job at a local university to help my folks out. I did not file any taxes since then. But I just found out through an article that I have to file taxes even though my income isn't high enough to be taxable. Please help me guide through this process. Is the IRS "the Streamlined filling procedure" the correct way to go? Any advice will be appreciated. kkiani


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## BBCWatcher (Dec 28, 2012)

Yes, you seem to fit the profile for that program.


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## DavidMcKeegan (Aug 27, 2012)

Hi!

Yes, you will definitely want to file the last three years of tax returns, and six years of FBAR if needed (FBAR is needed if you have more than 10K total in your foreign accounts).

If you are making less than the FEIE, then the odds of you owing anything to the US are slim to none. Also, if you do not owe anything, the IRS can not assess interest or penalties (as these are based on taxes owed). It will likely be a matter of just filing the correct paperwork. We have seen hundreds of people get caught up, and have found the IRS to be quite lenient for those that come forward voluntarily. 

Hope this helps!

David McKeegan


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## jbr439 (Nov 17, 2013)

DavidMcKeegan said:


> ...
> Also, if you do not owe anything, the IRS can not assess interest or penalties (as these are based on taxes owed).
> ...


If you have a "foreign trust" you can be hit with a failure to report (3520, 3520A) penalty (starting at $10,000) despite owing no money. In Canada, it is very easy to inadvertently have a "foreign trust" - RESP, TFSA.

A "foreign trust" is one reason why Streamlined may be a preferable route.


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## DavidMcKeegan (Aug 27, 2012)

That is true that fines may result from having a Foreign Trust, however like most things with the IRS, in the end it comes down to the individual decision of the person processing your case. In the majority of cases, if you honestly did not realize you had to file (i.e. not willfully hiding assets, etc), and you explain this when you file, the odds of receiving those penalties are slim to none.

I would recommend getting caught up while you are still under the radar, because if they "catch" you, that is when you start seeing fines like that come about.


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