Tax returns and FBAR - streamlined procedure

I am in a similar situation and am being advised to go streamline but don't know if they have their interests first.  I don't think I owe any tax as I paid UK tax on all my income.

Just to update - we went through a streamlined filing in January and although we're told the IRS don't actually confirm everything was in order, it's been 6 months with no drama so it looks like it all worked out OK.

Thanks again for the advice!

Just to update - we went through a streamlined filing in January and although we're told the IRS don't actually confirm everything was in order, it's been 6 months with no drama so it looks like it all worked out OK.

Thanks again for the advice!

Congrats ... you have however ended up with the worst possible outcome. No certainty, no closure and no child tax credit refunds.  If you had claimed child tax credits you'd have up to $3,000 paid to you by the IRS by now; so you'd know for sure that the IRS had processed the returns you filed. You'd also be wealthier. 

Congrats ... you have however ended up with the worst possible outcome. No certainty, no closure and no child tax credit refunds.  If you had claimed child tax credits you'd have up to $3,000 paid to you by the IRS by now; so you'd know for sure that the IRS had processed the returns you filed. You'd also be wealthier.

I hadn't heard of that credit before, but when I looked it up (https://www.irs.gov/pub/irs-pdf/p972.pdf [nofollow] ) it says:

"Foreign earned income. If you are filing Form 2555 or
2555-EZ (both relating to foreign earned income), you
cannot claim the additional child tax credit."

My wife's filing did include a foreign earned income exclusion like this, so it doesn't look to me like she would qualify to receive a payment - am I reading it wrong?

You cannot have both the child tax credit and the foreign income exclusion because of recent legislation. Your wife would needed to have utilized the foreign tax credit I am sure someone will come along and correct me if I'm wrong but that is how it works.

No news is good news with the IRS. Don’t worry about a lack of response. You can always call if you are worried. I called after 3 months and they were able to tell me.

In your wife's circumstances, I would keep my foreign born children out of the US tax system until they were at an age that they can decide themselves. Unless there is law change, they will have problems living overseas as US citizens, retirement savings, job prospects, Fatca and they would have never received a single benefit from the USA being born abroad. In future if they want to take up US citizenship, go work, study, live in the US, they always have that option.

I hadn't heard of that credit before, but when I looked it up (https://www.irs.gov/pub/irs-pdf/p972.pdf) it says:

"Foreign earned income. If you are filing Form 2555 or
2555-EZ (both relating to foreign earned income), you
cannot claim the additional child tax credit."

My wife's filing did include a foreign earned income exclusion like this, so it doesn't look to me like she would qualify to receive a payment - am I reading it wrong?

You could still amend the returns to revoke the foreign earned income exclusion and claim foreign tax credits instead.

What Guya says is right, yes you can amend. but in your wife's circumstances, I would leave well enough alone. amending returns, claiming credits puts you at a higher risk of an audit.
chances of an audit are still very low but the odds go up.

and as stated previously I would keep my foreign children out of the tax system and claiming them as dependents means that they will need to be in the system.

The choice is yours of course.

Personally I'd prefer the US government to give me $3,000; but I agree that this is your choice.  Incidentally, audits outside the States are almost unknown as the IRS do not have the resources.