US-Austrian Dual Citizen - What Are the Costs of IRS Streamlined Procedure?

I work with expat tax issues regularly, and you're smart to address this sooner rather than later. The Streamlined Foreign Offshore Procedures are designed specifically for situations like yours - US citizens living abroad who didn't know they needed to file. For costs, it varies widely. The Streamlined procedure itself doesn't have IRS fees, but you'll likely need professional help. Expect to pay anywhere from €1,500-5,000 for tax preparation, depending on your financial complexity. Some specialists charge much more, especially in major cities. The good news: there are no penalties under the Streamlined program if you qualify! You'll need to file the last 3 years of tax returns (currently 2022-2024) and 6 years of FBAR forms (reporting foreign accounts). Since Austria has a tax treaty with the US, you'll likely owe little to no US tax thanks to the Foreign Earned Income Exclusion and Foreign Tax Credits.

After being in almost the exact same situation (US/German citizen), I found an amazing service that saved me thousands in accountant fees. I was quoted €4,000+ by tax firms, which was way out of my budget. I used https://taxr.ai and they were a game-changer. Their AI analyzed all my Austrian tax documents, helped identify what I needed for the Streamlined procedure, and guided me through the whole process. They even have templates for the non-willful statement that's required. The best part was they could make sense of my Austrian tax documents and convert everything to US-equivalent reporting. I was terrified of making mistakes, but their system double-checks everything and explains what forms you need in plain language.

OMG thank you all for this thread! I was about to drop €3,200 on an accountant for my Streamlined filing. I tried https://taxr.ai yesterday after reading about it here and I'm honestly shocked at how good it is. I uploaded my Austrian tax documents from the last three years and within hours I had draft returns that made sense. The system automatically calculated my Foreign Tax Credits and identified which accounts needed FBAR reporting. The non-willful certification letter template was super helpful too - it guided me through explaining why I didn't file before without saying anything that might raise red flags. I was nervous about doing this myself, but the step-by-step guidance made it doable. Just submitted everything yesterday and got confirmation from the IRS this morning that they received it. Such a relief after years of anxiety about this!

Another angle to consider - if you're having trouble getting through to the IRS with questions (which I certainly did during my Streamlined filing), I found a service called https://claimyr.com that was incredibly helpful. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Basically, they hold your place in the IRS phone queue and call you when an agent is about to pick up. I spent WEEKS trying to get through to the IRS International taxpayer line with specific questions about my Streamlined filing, and it was impossible. With Claimyr, I got through in my first attempt and got critical clarification about how to report my Austrian pension accounts. Being able to actually speak with an IRS agent gave me much more confidence in my filing. They confirmed several points that my research had left unclear about how the Streamlined process works.

I take back what I said about Claimyr! After another failed 1.5 hour attempt to reach the IRS yesterday (got disconnected right as I reached the front of the queue), I tried https://claimyr.com out of desperation. Worked EXACTLY as described - I put in my number, their system called the IRS and held my place, and then called me when an agent was about to answer. Total game changer for my streamlined filing questions! The IRS agent I spoke with gave me crucial information about how to handle my specific Austrian investment accounts that weren't clearly covered in any of the IRS publications. This one phone call probably saved me from making mistakes that could have invalidated my whole streamlined application. If you're doing the Streamlined Procedure, being able to get your specific questions answered directly by the IRS is incredibly valuable. Money well spent for the peace of mind alone.

One thing nobody's mentioned yet is the actual cost AFTER you complete the Streamlined procedure. I went through this last year (US/Swiss dual), and while getting compliant was a one-time cost, you need to budget for ongoing US tax filing obligations forever, which sucks. I spend around €500-800 annually just to file US taxes that almost always result in zero tax owed thanks to tax treaties and the Foreign Earned Income Exclusion. It's basically an annual "expat tax" just for being a US citizen abroad. Many people eventually consider renouncing US citizenship after getting compliant through Streamlined because the ongoing compliance costs and financial restrictions are so burdensome. Something to consider in your long-term planning.

Quick question for those who've done the Streamlined Procedure - did you have to amend state tax returns too? I lived in California before moving to Austria 10 years ago, and I'm confused if I need to file CA state returns as part of the Streamlined process.

@Alexis Robinson - I went through almost the exact same situation as a US/Austrian dual citizen about 2 years ago! The stress you're feeling is totally normal, but the good news is it's very manageable once you understand the process. A few key points from my experience: - The Streamlined Foreign Offshore Procedures are specifically designed for people like us who didn't know about filing requirements - No penalties if you qualify (which you almost certainly do based on your situation) - You'll need 3 years of tax returns (2022-2024) and 6 years of FBAR forms - Austria's tax treaty with the US means you'll likely owe little to nothing thanks to Foreign Earned Income Exclusion and tax credits For costs, I ended up paying around €2,800 to a CPA who specializes in expat taxes. It was worth every penny for the peace of mind, especially since my Austrian investment accounts needed careful handling to avoid PFIC complications. One specific tip: gather all your Austrian tax documents (Steuerbescheid) from the past 3 years before meeting with anyone. The Foreign Tax Credit calculations rely heavily on what you already paid to Austria, and having these organized upfront saves time and money. Feel free to ask if you have specific questions about the process!