Claiming stimulus payments VERY late?

Hi everyone, so grateful for the wealth of information and support on this forum. Long time lurker, first post ;-)

I am wondering if it's still possible to claim the stimulus payments. I am a dual citizen currently living in the UK. I was travelling and unemployed since the start of COVID and wasn't able to return to the UK for a long time, so I didn't get anything from the UK government. However I had absolutely no idea I was eligible for the stimulus payments from the USA! I am wondering if it's possible to claim them now. Does anybody know? I can't find any posts on this since Feb 2021 when late payments were available.

I am delinquent on my returns since I renewed my US passport a few years back, and I will have to follow the SFOP procedures (again). My understanding is that the SFOP cannot be filed electronically but have to be printed and posted - I can do that - though I know they have a big backlog and won't actually process those for many months.

Looking at other posts here, it seems I will be able to e-file the 2021 (even though delinquent on previous years) but I am wondering:
1) have I missed the boat on eligibility for the stimulus?
2) if I e-file the 2021 return and try to claim a rebate for 2020, will I get the stimulus payments?
3) Alternatively is it worth trying to claim the rebate on the 2020 form (which will be paper, SFOP, and probably not processed until end of 2022...)?


Any guidance gratefully received!

My own advice would be to first get compliant again - not sure how easy that will be for you - the declarations required on form 14653 can be pretty onerous.

When did you last file a US tax return? if you have no tax due, then there are no penalties for late filing - it may be easier to catch up with your missing returns than run the risk of an IRS examination after  second streamlined process.

Stimulus payments will come through to you automatically via completing your missing tax returns.

Good luck, but as I say, get yourself compliant first before thinking about trying to claim stimulus payments.

My own advice would be to first get compliant again - not sure how easy that will be for you - the declarations required on form 14653 can be pretty onerous.

When did you last file a US tax return? if you have no tax due, then there are no penalties for late filing - it may be easier to catch up with your missing returns than run the risk of an IRS examination after  second streamlined process.

Stimulus payments will come through to you automatically via completing your missing tax returns.

Good luck, but as I say, get yourself compliant first before thinking about trying to claim stimulus payments.

+1

Once up to date on filing you should get the stimulus payments even with a zero tax return. My son was in this situation in 2020, living in England and not working. TurboTax wouldn’t allow an e-file of a zero return so he had to mail it in, but his stimulus payment did get paid okay.

Thank you durhamlad and smitch.

I last filed in 2015. I have never owed any tax before then and always been under the threshold, and my financial circumstances did not change much since then so I do not expect to liable for any tax for the period 2016-2021.

smitch, are you suggesting that to get compliant, I should just file as normal and assume that because I owe no tax, I won't face a penalty for late returns? (instead of doing the Streamlined process again with risk of an IRS red flag)
Would I then just file 2020 and 2021 (for the stimulus), or should I still file for all missing years 2016-2021 (but not write the red ink Streamlined etc on the top, or fill out 14563)?

The penalty for failure to file is documented here:

https://www.irs.gov/payments/failure-to-file-penalty#:~:text=The%20Failure%20to%20File%20Penalty%20is%205%25%20of%20the%20unpaid,25%25%20of%20your%20unpaid%20taxes.

On the (very important) basis that you have no tax to pay, then my interpretation would be that the penalty will therefore be zero - no sure of other opinions here?

Whatever, you have long past any opportunity to e-file and so you will need to file in paper and just sit back and wait (it will be many months) - eventually you will get your stimulus payments with your 2020 return.

All of the above assumes that you have no liability file FBAR returns - have you considered this?

Follow the streamline process to become compliant. And you will (in time) receive the stimulus payments.

Then just e-file each year. Won’t take but a few minutes and if something like this happens again, it’ll be automatic payment.

@KFdancer

I think the issue is that the OP has already followed streamlined once several years ago  and then fell delinquent again in 2016. Going through the streamlined process a second time requires explanations and declarations under penalty of perjury - IMO a risky strategy - plus potentially 6 years of FBARS!.

As the OP is in the IRS system already with presumably a UK address, wouldn't it be better to just file paper returns for the missing years 2016-2020 inclusive?  - with no tax to pay, there's no penalty to pay either.

@KFdancer

I think the issue is that the OP has already followed streamlined once several years ago  and then fell delinquent again in 2016. Going through the streamlined process a second time requires explanations and declarations under penalty of perjury - IMO a risky strategy - plus potentially 6 years of FBARS!.

As the OP is in the IRS system already with presumably a UK address, wouldn't it be better to just file paper returns for the missing years 2016-2020 inclusive?  - with no tax to pay, there's no penalty to pay either.

Oh!!!!!  I missed that part.  Hmm, yeah, worth a shot. 

As the OP is in the IRS system already with presumably a UK address, wouldn't it be better to just file paper returns for the missing years 2016-2020 inclusive?  - with no tax to pay, there's no penalty to pay either.

I think this is what I would try first.

Thank you all. I will not risk trying the SFOP again - apparently in doing SFOP the first time, I committed to remain in compliance. To claim negligence once may be regarded as a misfortune, but to claim negligence twice looks like carelessness... So 6 years of FBARs and 1040s here I come. As one of those compulsive bank-account switchers (loyalty doesn't pay) I'm finding FBARs are very painful.

Thank you all. I will not risk trying the SFOP again - apparently in doing SFOP the first time, I committed to remain in compliance. To claim negligence once may be regarded as a misfortune, but to claim negligence twice looks like carelessness... So 6 years of FBARs and 1040s here I come. As one of those compulsive bank-account switchers (loyalty doesn't pay) I'm finding FBARs are very painful.

I’m with you on banks and FBARs. In looking for places with better interest rates for our savings then unless it is significantly better I won’t put our savings there just to save adding new banks to the FBAR report. Not cost effective I know.

I can say from experience that FBARS can be especially painful when you find yourself to be a signatory (only, not beneficiary) on multiple global bank accounts - my filing in 2017 had 40+ accounts spread over 6 countries - now that was a nightmare!!