now have the chance to redeem themselves with the Internal Revenue Service.

Following a revision of IRS regulations, US expatriates who otherwise qualify for the exclusion can now file tax returns for years dating back to 1982 and still claim a $70,000 annual earned income exclusion.

Previously, US citizens living abroad who filed late returns were not automatically eligible for this exclusion.

Ms Denise Thompson, senior tax manager with Butterfield & Steinhoff, said the new rules gave non-filers the chance to remove a huge weight off their shoulders.

"They will no longer have to fear the knock at the door from the IRS seeking thousands of dollars of taxes from prior years,'' she said.

"We strongly encourage all taxpayers who have not yet filed prior years' returns to do so and take advantage of the availability of the earned income exclusion on such returns.

"Since many taxpayers may still owe tax after electing the exclusion, it is essential for such taxpayers to file original returns for prior years as soon as possible in order to assure a valid election under the revised regulations.'' She said that Butterfield & Steinhoff has a tax department comprising six professionals who specialise in US corporate and individual tax services.

"We can assist US taxpayers who may desire to assess their options with respect to the filing of prior years' income tax returns,'' said Ms Thompson.

"Our services include consultations regarding available options, preparation of tax returns and representing the taxpayer before the IRS.''