Calling all U.S. Citizens

Did you properly report your foreign income and assets? U.S. citizens are required to report income on their tax returns, irrespective of where the income is earned or where they live. This means that a U.S. citizen abroad could be required to file tax returns in more than one country. Generally, the tax rules provide an offset to U.S. tax for foreign tax paid.

For several years, the IRS has focused on increasing compliance in reporting both foreign-based assets and income for U.S. citizens. Penalties for noncompliance have been raised and enforced (to the extent that the IRS contacts the taxpayer). In order to encourage compliance the IRS created the Offshore Voluntary Disclosure Program and several other disclosure options with low or no penalties.

Although the IRS closed the Offshore Voluntary Disclosure Program in late September, the Streamlined Compliance and Delinquent Information Returns options remain in place. For U.S. citizens living abroad, it is possible to become compliant through these processes, pay any tax an interest due, without incurring any penalties. U.S. residents would be subject to a small 5% penalty on undisclosed assets, but this is much lower than the normal penalties which can actually exceed the value of the unreported assets.

There are specific eligibility requirements for these programs and it is unclear how long the IRS will maintain these programs. In today’s digital age, it is likely that the IRS will begin searching for taxpayers who haven’t properly reported.  

Don’t wait to be contacted by the IRS; Schneider Downs can assist you with your compliance efforts.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2021 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

2020 Credit Available for Natural Gas Producers
Learn How Employer-Provided Autos Can Benefit From IRS Notice 2021-7
Consolidated Appropriations Act as it Relates to Individuals
Large Declines Expected for 2020 PA Impact Fee Collections
New $67 User Fee for Estate Tax Closing Letters Proposed by IRS
Meal and Beverage Expenses Fully Deductible for the Next Two Years

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office

One PPG Place, Suite 1700
Pittsburgh, PA 15222
p:412.261.3644     f:412.261.4876

Map of Columbus Office

65 East State Street, Suite 2000
Columbus, OH 43215
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102