
Quoting
Bubba Jimmy
That's correct. Between the foreign income exclusion on IRS Form 2555 and the foreign tax credit available for any income taxes paid to Brazil, your father may owe nothing. Failure to file or failure to pay penalties are assessed on any balance due. If there is no balance due, there's no penalty but he does need to file the returns. Once he consults a qualified tax professional (an enrolled agent or a qualified CPA) he will know the situation that will apply to him. It is better not to ignore this but address it head on so there's no pall of fear hanging over his head. It is very likely not to be as bad as he things, and not close to being as bad suggested earlier in this thread by an unknowledgable commenter.