<prompt> Human: I am a 25yo who is US citizen by birth. I moved to Australia when I was 6 months old and have lived here my whole life. I obtained dual citizenship when I was about 14 years old. I work full time and have been filing my Australian tax returns every year. BUT I just found out that I have been supposed to submit a tax return to the IRS for US taxes every year too!!! Even though I have never lived, voted or worked in the United States. I would probably not have to pay any additional tax because the taxation in Australia is higher, but it costs about 300year for an accountant to submit the forms I am about 7 years behind. Also there are penalties for late submission. My other option is to renounce my US Citizenship but this costs US2350 or about AU3050 as well as two formal interviews at the consulate in Sydney, which is a few hours away. Also I believe your tax affairs need to be up to date in order for them to allow you to relinquish the citizenship...Im not sure if anyone else has had a similar experience, but I would appreciate any advice. Sorry for the rant.  <response>: In order to claim the foreign income tax exclusion and any credits, you still have to file your IRS returns. There is a new program for expats which allows you to file your last 3 years of returns, and any missing informational returns such as FBARs this may include superannuation, Australian life insurance, mutual funds, or anything that adds up to over 10,000 in a year. All you will have to pay is any taxes which sounds your exclusion credits will wipe out any IRS taxes and there is no penalty under the streamlined foreign offshore disclosure program.Weve got a few articles about the subject if youre interested, let me know. IRS foreign tax compliance is incredibly difficult - definitely not as easy as some of the other replies have said. 