In an announcement last week, IR-2012-65, the Internal Revenue Service announced its new efforts to help U.S. Citizens living abroad, including dual citizens, and those with foreign retirement plans. The efforts involve giving the affected taxpayers an option to come forward and catch up with their U.S. filing obligations if they owe little or no back taxes. The typical affected taxpayer would be a U.S. taxpayer, living abroad, who perhaps failed to file their reports of foreign bank and financial accounts (FBARs) and owe $1500 or less in tax for the covered years.
Now, the IRS has not yet published extensive procedures on this program, but the published announcement indicates that these taxpayers would file delinquent U.S. forms 1040 for the past three years and delinquent FBARs for the past six years. The effective date is September 1, 2012.
For the IRS announcement text, click here.
Of course, if you have any questions, you should consult your tax advisor to discuss.