“I was surprised that there were no penalties”: How Jonathan got compliant with the IRS
“I am completely at ease now – TFX made it very easy, and going through the Streamlined Procedure made everything that came after simpler too."
Jonathan Balseca, occupational doctor, Ecuador
Jonathan Balseca, an occupational doctor in Ecuador, holds US citizenship through his American-born mother and has never lived in the United States.
His father and brother, both living in the US, had told him that he needed to file. Jonathan knew it was something he had to deal with – he just hadn't yet.
That changed when he decided to catch up using the IRS Streamlined Foreign Offshore Procedure (SFOP). What had been a lingering item on his to-do list turned into a fast process – completed with zero penalties.
Key facts
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Country of residence |
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Filing method |
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Main challenge |
Understanding US filing obligations as a lifelong citizen abroad who had never filed |
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Outcome |
Fully compliant |
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Current status |
Filed 2025 tax return as a regular filer |
US citizenship, inherited – US taxes, unfiled
Jonathan was born in Quito, holds US citizenship through his American-born mother, and built his entire life and medical career in Ecuador.
Like many people in his position, he didn't associate US tax rules with a country he'd never lived in.
"I have never filed my taxes before because I am an American who lived in Ecuador my whole life. I didn't know much, but my father and brother – who live in the US – always told me that even though I didn't live or work there, I still needed to file my taxes to avoid issues with the IRS," Jonathan says. "I started reading up on the subject and learned about the Streamlined Procedure, which was designed precisely for cases like mine."
As Wendy Christiansen, CPA and Tax Supervisor at Taxes for Expats, explains:
"Jonathan's situation is a great example of what's often called an 'Accidental American' – someone who holds US citizenship, usually through a parent or their place of birth, but has never lived in the US. Because they've never set foot in the US, it's easy to assume US tax rules simply don't apply. Many Accidental Americans don't realize they have filing obligations at all until something prompts them to look into it – for Jonathan, that was his family reminding him. In reality, it's citizenship, not residency, that creates the filing requirement, and the Streamlined Procedure exists precisely for situations like his, where the non-compliance was non-willful."
Family advice and a search for the right help
"Since my father and brother had advised me to stay current with the IRS, I felt a sense of responsibility and a need to get up to date to avoid future legal problems," Jonathan recalls.
What held him back initially was uncertainty. "A lack of knowledge and the worry that I might have to pay huge fines" made the idea of catching up feel intimidating", he says.
As Huntly Mayo-Malasky, CPA and CEO at Taxes for Expats, explains:
"Fear of penalties is one of the most common reasons people put off catching up on unfiled taxes, and it's understandable – on paper, missing US filings can carry steep failure-to-file, failure-to-pay, and FBAR (Report of Foreign Bank and Financial Accounts) penalties, and those can add up quickly over years of not filing. But the reality is far less alarming for most people we work with. The Streamlined Procedure exists precisely because the IRS doesn't want to penalize taxpayers whose non-compliance was non-willful – it just wants people back in compliance. That's why the program waives those penalties entirely once someone qualifies, which is what made Jonathan's case straightforward rather than something to fear."
Jonathan's path to TFX started with a simple search: "It was a simple internet search for companies specializing in expat taxes; it was a pleasant surprise to discover that such companies actually existed."
“I was surprised that there were no penalties, fines, or anything of that sort”
Once Jonathan decided to move forward, the process ran quickly and smoothly.
"The entire process, from start to finish, was easy and educational," Jonathan shares. "It might have seemed very complex, but my advisor's knowledge and expertise magically transformed my information into tax return documents."
For Jonathan, the biggest relief was learning that catching up didn't come with the consequences he'd feared.
"I was surprised that there were no penalties, fines, or anything of that sort – things that might otherwise discourage a citizen trying to get their taxes in order," he says.
With the Streamlined Procedure behind him, Jonathan moved straight into filing normally – no longer catching up, just keeping current.
"I am completely at ease now; I was immediately able to file my 2025 taxes normally," he says. "TFX made it very easy, and having gone through the Streamlined Procedure made the process simpler for me as well."
Streamlined filing with TFX: a penalty-free path for US citizens abroad who've never filed
Whether you've missed a few years of filing or – like Jonathan – have never filed a US tax return at all, the IRS Streamlined Foreign Offshore Procedure offers a structured, penalty-free way to catch up.
It's designed for Americans abroad whose non-compliance was non-willful, meaning you didn't intentionally avoid filing – you simply didn't know. The program provides full penalty amnesty, regardless of income level or how long you've been behind.
- Preparation and filing of 3 years of federal tax returns
- Submission of 6 years of FBARs (Foreign Bank Account Report)
- Eligibility review and analysis of your tax situation
- Secure document collection and communication with your assigned CPA
- Final compliance check before submission
- Optional preparation of a non-willful certification
Taxes for Expats has helped more than 2,200 taxpayers complete streamlined procedures – just as it did for Thorsten, Aishah, Matthew – to regain clarity, compliance, and peace of mind.
Our team guides you through the entire process step by step – from the initial consultation and eligibility assessment to final submission with the IRS.
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