Streamlined Filing Procedures are intended to bring a taxpayer into compliance. The program allows a taxpayer to file the most recent 3 years of Federal tax returns, 6 years of FinCen form 114 reporting bank and financial accounts held outside the US and a certification form. Generally, penalties are waived. Interest is calculated on any tax owed.
Under this Program:
You can file 6 years of the FinCen 114 form reporting all bank and financial accounts held outside the U.S. with no late filing penalty.
You can also file the prior two years of tax returns and the current year without incurring late filing penalties. Interest would be calculated on any balance due.
While the individual states are not required to accept the IRS Streamlined Filing program, many will. Talk to your tax advisor about your individual situation.
Foreign banks and financial institutions are required to report accounts held by US citizens and Green Card Holders to the US government. In turn, the government matches that information to the FinCen form 114 filed. If no reporting forms were filed, you may receive a letter requesting the forms. The penalties for not timely filing these forms are substantial.