Catch up on your US taxes with the Streamlined Filing Procedure

If you are an American living in Germany, you might feel overwhelmed. Maybe you have not filed US tax returns for several years. Maybe you are worried about heavy penalties or something worse. Take a moment to breathe. You are not alone.

Many expats forget the US filing requirements at first. Life overseas is busy, and Germany has its own tax system. As a result, US obligations can easily fall through the cracks.

Why Americans in Germany fall behind on their US taxes

Germany has payroll taxes, social contributions, and a complete filing system. You may file and pay your taxes in Germany and feel finished. Many expats also believe the myth, “If I owe nothing, I do not need to file.” That is incorrect for US citizens. You may owe zero US tax and still have a filing requirement.

The fear is real, but you have options

Most people who fall behind are not trying to hide anything. They simply did not know the rules. They did not understand the required forms. They assumed Germany handled everything. The IRS understands that this situation is common. That is why the Streamlined Filing Procedure was created. It offers many expats a structured way to catch up.

What “Streamlined” means in plain language

The Streamlined Filing Procedure is essentially a catch-up (amnesty) option offered by the IRS. It requires filing a limited number of prior US tax returns. You must also file required foreign bank account reports, if applicable. The main benefit is penalty relief. For many expats, penalties are the biggest concern. This procedure is designed to reduce that risk when the failure to file was an honest mistake.

Keep in mind, you can only use the Streamlined Filing Procedure once in your lifetime. 

Who the programme is for

The Streamlined Filing Procedure applies to “non-willful” situations. This means you did not intentionally fail to file. You may have been unaware, confused, or careless, but not deliberate. It is not intended for those who knowingly ignore their filing duties.

Catch up on your US taxes now

The two core parts of the programme

In most cases, you submit three years of overdue US tax returns. If you held foreign bank accounts, you also need to submit six years of FBARs (Foreign Bank and Financial Accounts). You must also include a signed explanation describing why you fell behind (Form 14653). This forms the basic package for many expats.

What is an FBAR, and why does it matter

An FBAR is not a tax return. It is a report of foreign bank accounts. If the total value of your non-US accounts exceeded $10.000 at any time during the year, you may need to file an FBAR for that year. This includes common German accounts, such as a Girokonto, savings accounts, and joint accounts.

Many people worry after reading about large FBAR penalties online. However, the Streamlined Filing Procedure often removes FBAR penalties for expats living abroad. It is also important to note that FBARs are submitted to the US Treasury Department, not the IRS. 

What you may need beyond the basics

Some expats must file additional forms depending on what they own. German pensions and investment accounts can create extra reporting obligations. Certain savings products also require special attention. This does not always mean higher taxes, but it often means more paperwork. Accuracy is essential for staying compliant. 

What happens after you file

The IRS reviews and processes your submission. If you owe tax, you pay it when filing. If interest applies, that must be paid as well. Many expats owe little or no US tax due to common credits and exclusions. Still, filing is important because it restores you to good standing. Some people receive follow-up questions; many do not. The goal is to become and remain current. In many cases, penalties for late filing are waived. 

A practical example in Germany

Imagine you moved to Berlin in 2019. You work for a German company or operate as a freelancer. You filed German tax returns each year but did not file US returns after leaving the United States. The Streamlined Filing Procedure allows you to file the last three US tax years now. If applicable, you would also file FBARs for the previous six years. After that, you file your taxes annually, on time. That is what catching up can look like.

Common mistakes to avoid

Some people submit the wrong tax years, forget required FBARs, or estimate account balances without proper documentation. Others overlook forms related to foreign assets. These errors can delay processing and raise unnecessary questions. Organised records and careful preparation are critical.

How to start without feeling overwhelmed

Begin by listing every non-US account you maintained. Collect past statements, year-end bank summaries, and downloadable account records. Gather German payslips, tax assessments, and pension documents. Then, approach the process one year at a time. Steady progress works best. 

The takeaway

If you are behind, you are not doomed; you are simply late. The Streamlined Filing Procedure exists because many expats become confused about their obligations. With the right steps, you can correct the situation and move forward.