Haven’t filed in years? – there’s an orderly way to fix it.
Many Americans in Israel never knew they had to file. The IRS knows that too, and has a special procedure for people living abroad who didn’t file in good faith – with no penalty for those who qualify.
The procedure: catching up while living abroad
It’s called the Streamlined Foreign Offshore Procedures. Instead of filing every year you missed, you file:
- 3 tax returns – for the last three years whose deadline has passed.
- 6 years of foreign bank account reports (FBAR) – if your accounts together exceeded $10,000 at any point in the year.
- A signed statement (Form 14653) explaining why you didn’t file – in good faith.
For those who qualify, there is no penalty for not filing. If any tax is due for those years you pay it with interest – but for most families in Israel, with a credit for Israeli tax paid, nothing is due at all.
Who qualifies
- Not filing was non-willful – you didn’t know, didn’t understand, or got bad advice. Not deliberate concealment.
- You lived outside the US – at least 330 days abroad in one of the three years, with no US home.
- The IRS hasn’t opened an examination of you. Once they contact you, this route closes.
- You have a US Social Security number (or we get one first).
If there’s doubt about good faith, or complex US income, this isn’t a do-it-alone case. We’ll tell you that in the first conversation and refer you to the right professional.
Why not wait
No need to panic, but there are good reasons not to put it off:
- The procedure is only available until the IRS contacts you. Israeli banks report accounts of US citizens to the US.
- Unfiled bank account reports carry penalties of thousands of dollars per year – but not under this procedure, for those who qualify.
- If you have children – you may also be owed a refund for some of those years. How it works.
How it works
Review call
We check whether the procedure fits you: where you lived, which accounts you have, and what happened in those years.
Gather documents
Income for three years and account balances for six. We tell you exactly what’s needed.
Prepare the file
3 returns, 6 years of FBAR and the statement – written carefully, because it’s the key part of the file.
File and follow up
We file and follow up until it’s processed. From there you continue with a regular annual return.
Pricing
A fixed price for the full file. Especially complex cases (companies, US property) are quoted in advance.
| Service | Price |
|---|---|
| Unfiled years catch-up3 returns, 6 years of FBAR and the streamlined certification | ₪6,900 |
| FBAR onlyOne year of FBAR, for those not required to file a tax return | ₪690 |
Prices are final. Government fees are paid separately at the official rate. Full price list
Frequently asked questions
Do I have to file every year since I moved to Israel?
Under the streamlined procedure – no. You file 3 years of returns and 6 years of bank account reports, and that closes the past for those who qualify.
Will I have to pay US tax?
For most families in Israel, no. Israeli tax paid is credited against US tax, and usually nothing is left. If tax is due, you pay it with interest – with no penalty under this procedure.
What is FBAR?
An annual report to the US government on bank and savings accounts outside the US, when the combined balance passed $10,000 at any point in the year. It isn’t a tax – just a report.
My bank asked me to sign a W-9. Is that related?
Yes. Israeli banks identify American clients and report them to the US. It’s a good sign to get your filings in order now, while the procedure is still open to you.
What if I want to renounce my citizenship?
To renounce without exit tax you generally need to certify 5 years of tax compliance, so catching up is usually the first step. We also support the renunciation process with the Embassy.
Let’s look at your case – free
Bar answers you personally on WhatsApp: what can be done, how long it takes and what it costs.