Tax
IRS Streamlined Filing Compliance Procedure
Also known as: Streamlined Procedure, Streamlined Foreign Offshore Procedure, SFOP, SDOP
Quick answer
IRS — Streamlined foreign offshore procedures · checked 9 Nov 2026
The IRS foreign-procedure instructions distinguish the residence test for US citizens and lawful permanent residents from the test for other individuals. Joint filers must both satisfy the applicable non-residency requirement.
Eligible submissions must include the required tax, interest and certification. Qualifying foreign-procedure submissions receive specified penalty relief, but the process does not confer immunity from examination or protect a false non-wilfulness certification. An existing civil examination can make the streamlined process unavailable.
Sources
- IRS — Streamlined foreign offshore procedures · checked 9 Nov 2026
Related terms
FBAR
FBAR is the foreign financial-account report filed on FinCEN Form 114. Under the rules checked in 2026, a US person generally must file when reportable foreign accounts exceed $10,000 in aggregate at any time during the calendar year. Financial interest or signature authority can trigger reporting. FBAR is separate from the income-tax return and Form 8938.
FATCA
FATCA creates foreign financial-account reporting obligations for financial institutions and certain taxpayers. Under the IRS rules checked in 2026, individuals qualifying as living abroad generally file Form 8938 above $200,000 at year-end or $300,000 during the year; joint-filer thresholds are $400,000 and $600,000 respectively. Filing obligations and exceptions depend on the person's circumstances.
FEIE (Foreign Earned Income Exclusion)
The Foreign Earned Income Exclusion allows eligible US taxpayers to exclude up to $132,900 of qualifying foreign earned income for tax year 2026. A foreign tax home and either the bona fide residence or physical presence test are required. The physical presence test requires 330 full days in foreign countries during a consecutive 12-month period. The exclusion does not reduce self-employment tax.
Foreign Tax Credit (FTC)
The Foreign Tax Credit can reduce US income tax for qualifying foreign income taxes paid or accrued. It is subject to source, category and US-tax limitations; it is not a guaranteed refund of foreign tax. Form 1116 is generally used by individuals. Taxes attributable to income excluded under FEIE cannot also generate a credit.