If it wasn't an accident, there's still a way back.
The Streamlined procedures are only for honest mistakes. If you knew you had to report foreign accounts or income and chose not to, the IRS Criminal Investigation Voluntary Disclosure Practice is the path designed for you. It costs more, and it's still far better than being found first.
The short version
- For willful cases: people who knew about the reporting rules and didn't follow them.
- It starts with a preclearance request to IRS Criminal Investigation, before anything else is filed.
- You file amended or late returns and FBARs, usually for six years, and pay tax, interest and civil penalties.
- Done properly and in time, it generally resolves the matter civilly rather than criminally.
1Is this you?
Most people who worry they were "willful" weren't. Not knowing the rules, misunderstanding them, or following bad advice is non-willful. Willfulness usually means you knew about the requirement and chose not to comply, or deliberately avoided finding out. How the IRS draws the line.
2How it works
- Preclearance. A request (Form 14457, Part I) to IRS Criminal Investigation, which checks that you're eligible: for example, that you're not already under examination or investigation.
- Full disclosure. Once precleared, you submit a detailed account of the accounts, income and history (Form 14457, Part II).
- Civil examination. Your case moves to an IRS examiner. You file the returns and FBARs for the disclosure period, usually the most recent six years, and agree to the tax, interest and penalties.
3What it costs
Expect the full tax and interest for the disclosure period, plus civil penalties. Under the current framework, the usual starting point is a civil fraud penalty of 75% of the tax for the year with the highest amount owed, and a willful FBAR penalty of 50% of the highest total balance of the unreported accounts.
The IRS has proposed changing this. Its December 2025 proposal would apply a 20% penalty to each year's amended return, late-filing penalties to returns that were never filed, and FBAR penalties year by year. It isn't final yet, and the IRS says eligibility will follow the procedures in effect when the changes are finalized. We check the current terms for your case before anything is filed.
Expensive, yes. But predictable, and it ends the worry.
4How we help
Voluntary disclosure is a legal process as much as a tax one. When a case looks willful, we prepare the tax returns, FBARs and calculations, and we work alongside a tax attorney you choose (or one we can recommend), so your conversations about the facts are protected by attorney-client privilege.
Common questions
Can I just file Streamlined and hope for the best?
Not if your conduct was willful. Streamlined requires a true certification under penalty of perjury, and a false one creates more risk than the original problem.
Does voluntary disclosure guarantee I won't be prosecuted?
No program can guarantee that. A timely, complete and truthful disclosure is generally resolved through civil penalties, and the IRS treats it as a significant factor in your favor.
Is there a "quiet disclosure" option?
Simply filing amended returns without telling the IRS is risky for willful cases and isn't something we recommend. It gives up the protections of a formal disclosure.
Not sure if you were willful? That's the first thing we'll figure out.
Your consultation is confidential and free. We'll tell you honestly which side of the line you're on.
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Reviewed by Lewis Grunfeld, CPA. This page is general information, not tax or legal advice. Voluntary disclosure cases should involve a tax attorney.