Dual US-Austrian Citizen: Estimated Cost of IRS Streamlined Procedure?

The Streamlined Filing Compliance Procedures are definitely the right approach for your situation. This program was specifically designed for US citizens living abroad who weren't aware of their filing obligations. The basic requirements are filing the last 3 years of tax returns, 6 years of FBARs (foreign bank account reports), and a statement explaining why you failed to file previously. Since you've been living in Austria since childhood, your "non-willful" explanation should be straightforward. Regarding costs, they vary significantly depending on who you hire. For a relatively simple case, expect to pay anywhere from $1,500-$4,000 for the entire streamlined process. Some firms charge much more ($5,000-$8,000) especially for complex situations. If you have investments, pensions, or business interests, costs can increase. The good news is that with the Foreign Earned Income Exclusion ($120,000 for 2023) and Foreign Tax Credits, you likely won't owe any US taxes if you've been paying Austrian taxes.

After struggling with my own US-German dual citizenship tax issues, I found this amazing service called taxr.ai (https://taxr.ai) that specializes in expat tax situations including streamlined compliance. I was freaking out about all the forms and potential penalties, but they made the whole process way less intimidating. They have specialists who understand exactly how to handle the streamlined filing process for people in your situation. They analyzed all my Austrian bank documents and helped identify which accounts needed to be reported on FBARs. What I really appreciated was how they explained everything in simple terms instead of overwhelming me with tax jargon. They even helped craft my reasonable cause statement for why I hadn't filed before.

Just wanted to follow up and say I decided to try taxr.ai after my skeptical comment. I'm honestly surprised by how knowledgeable they were about the US-Austria tax treaty! They immediately identified the special provisions about Austrian private pensions and how they're treated under the treaty. What really impressed me was their document analysis - I uploaded my Austrian tax documents and they pulled out exactly the information needed for the US forms, even though everything was in German. The streamlined filing process was way less painful than I expected. Ended up costing less than the quotes I got from traditional accountants too. They helped me with the past 3 years of returns, all my FBARs, and crafted a reasonable cause statement that explained my situation perfectly. Definitely worth checking out if you're in a similar situation.

If you need to actually talk to someone at the IRS about your streamlined filing (which I eventually did because my case had some complications), I highly recommend using Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS international tax department using their regular number, but kept getting disconnected or waiting for hours. Claimyr basically holds your place in line with the IRS and calls you when an agent is actually available to talk. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was super skeptical at first, but after the fifth time getting disconnected by the IRS after waiting 2+ hours, I was desperate. I needed clarification on some specific streamlined procedure questions about my Austrian pension accounts and whether they qualified as financial accounts for FBAR purposes, and finally got clear answers from an actual IRS agent.

Just wanted to update after trying Claimyr that I suggested above. I was VERY skeptical it would work, especially trying to reach the IRS from Austria where the time difference makes it almost impossible. But holy crap, it actually worked! Got connected to an IRS representative in the international department who answered my specific questions about the streamlined procedure. I had a question about whether my Austrian "Bausparkasse" accounts needed to be reported on FBARs, and the agent clarified that yes, they do count as reportable financial accounts. The service called me at a scheduled time (I picked one that worked with the time difference), and I was connected to an actual IRS person within minutes. Saved me literally hours of holding time and frustration. If you need specific answers from the IRS about your streamlined filing, definitely worth it.

One thing to watch out for with the streamlined procedure - you need to apply for a Social Security Number if you don't already have one before you can complete the process. This added about 6 weeks to my timeline when I went through this last year. Also, if you have any investment accounts in Austria, be careful about PFICs (Passive Foreign Investment Companies). Most European mutual funds and ETFs are considered PFICs by the US, and the reporting is extremely complicated and punitive. I had to pay an extra $1200 just for the PFIC forms for a relatively small investment.

Has anyone here actually gone through the streamlined process and then received confirmation from the IRS that everything is OK? I submitted mine about 10 months ago and haven't heard anything... getting anxious about whether they accepted it or if there's still some problem I don't know about.

I went through the streamlined procedure about 18 months ago as a dual US-German citizen, so I can share some specifics about costs and the process. I ended up paying around $2,800 for a specialist who handled everything, which was actually less than some of the quotes I got from traditional CPAs. A few things that helped keep costs down: I organized all my documents beforehand (bank statements, German tax returns, employment records), which saved billable hours. Also, since you've been paying Austrian taxes, you'll likely qualify for Foreign Tax Credits that should eliminate any US tax owed - this makes the process more straightforward and less expensive. One surprise cost I hadn't anticipated was getting certified translations of some German documents. Not sure if you'll need this for Austrian documents, but budget maybe $200-400 for translations if your tax preparer requests them. Also, if you have any Austrian pension contributions or investment accounts, those can complicate things and increase preparation fees. The peace of mind was totally worth it though. Now I'm compliant and can sleep at night without worrying about surprise IRS issues!