How to file all the taxes I didn't file since 2016 (passport renewal concerns)

[burk88]

I'm planning on moving back to the US for good in January. At the same time, I also need to renew my passport before then, but I'm paranoid about not getting my passport approved because I never filed for US taxes.

- I've never made over 30k here in Japan, always have been low income.

I've seen people suggest just physically mailing in the 1040 forms to Austin, TX but can I do that in November when it's not even tax season? Also, I have already quit my current job and have not received the 源泉徴収票 yet for this year.

I want to get everything sorted out as soon as possible... what would be the best options in my situation? I'm on H&R Block now and they're quoting me over $699 to use the Streamlined Filing Compliance Procedures... um yeah not sure I want to spend that.

I’m not sure if it's worth the risk to send my passport renewal documents before I at least send all the previous unfiled forms...

 

[harpgal]

@burk88 Don't worry about the taxes impacting your passport.

However you do need file your tax returns and FBAR forms. You may want to talk to a tax professional. If you are under the filing limit, you should have no penalities for filing the missed returns. However the FBARs are a different story. I believe you need a return filed first (having zero taxable income helps) so you have a valid reason to file the FBAR late without a penalty. Note you only need to file FBARs for years you had $10k in any foreign account.

But don't panic. It is just an exercise in paperwork. Always file your taxes when residing abroad!

 

[burk88]

@harpgal Do you know if there is a way to file all my FBARs for free?

 

[harpgal]

@burk88 It is just a form you can download and mail it in for free (just postage).

 

[lostsoul2016]

@harpgal AFAIK, FBARs can be completed online at no cost, even for past years: https://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

 

[harpgal]

@lostsoul2016 Good point

 

[ethzz]

@harpgal FBARs are all online (for some year now), I don't think there is even an option to print/mail them in.

Also, FBAR is only due if you've had more than US$10k total in all your foreign accounts in any given year. If you don't have that much money, no FBAR is needed.

 

[funker]

@harpgal

Don't worry about the taxes impacting your passport.

Is that an urban myth thing? Even I was aghast when I read that, and I have dealt with the US federales before.

 

[harpgal]

@funker The US can withhold a passport renewal if you don't pay (not specifically not filing), but it would require OP to be knowingly delinquent by the IRS for lack of payment. Mainly to keep people from fleeing without paying delinquent taxes.

 

[funker]

@harpgal Aha!!! Very interesting. I bet others do that as well, we just aren't aware of it. Thanks

 

[moveonupyup]

@harpgal

However the FBARs are a different story.

Nah just go ahead and electronically file the FBARs and be honest that you're late.

Source: https://www.irs.gov/irm/part4/irm_04-026-016

Scroll down to "FBAR Penalties", "FBAR Penalty Structure", "FBAR Penalties - Examiner Discretion" and so on. It's a soothing read for anyone stressed about having missed an FBAR or two, or six. Just file it, they're not going to do a gotcha on you for being late.

 

[resjudicata]

@harpgal Good thing I’m too poor to have 10k in a bank account!

 

[rogueebear]

@burk88

I’m planning on moving back to the US for good in January

Sorry as this is not related to your OP, but pointing it out Just in case you’re not aware…. If you do it on/before December 31st 2023 then you can avoid 2023 resident tax (billed from June 2024).

If you’re still residing in Japan as of January 1st 2024 then you’re liable for the whole 2023 resident tax and would need to appoint a resident tax representative to pay it for you when the bill is ready in June 2024 (although some municipalities will send the bill overseas)

 

[burk88]

@rogueebear Thanks for the information!

 

[burk88]

Can the representative be a friend?

 

[rogueebear]

@burk88 I Believe so. But unlike appointing an income tax representative (which has a national standardized method), the resident tax representative is appointed at local government level, so there is no standardized process.

 

[funker]

@burk88 I am CDN, but the couple of times I have let it go I just started bombarding them with the normal T-1 filing forms in order from latest to most recent. If you are missing any of the the T-4 income reporting forms from your employers just eyeball it and make a note that it is an estimate. You are so late anyways I doubt the season matters.

Allowing for the full on League of The Sith weirdness of the passport renewal thing, one could assume even the US tax service would rather you start the filing procedure than let it go even longer.

 

[foxhound21136]

@burk88 You may want to call the IRS .. they are helpful .. I did it for a friend before and just got downloaded old tax forms and mailed them in ..

It was fairly easy

 

[ethzz]

@burk88 Google up 'streamlined filing' or something similar. Filing for past years is not difficult, and tho some folks do consult a pro/CPA, for your income level it should be relatively simple (and claiming the FEIE, all your income will be excluded, so no tax due, and no penalties).

Also, tho there may be an expiration date that's gone by, you were at least at one point eligible for the US pandemic stimulus payments--which could be, could have been?, a couple thousand dollars of free money for you.