Requirements to Qualify for the IRS Streamlined Tax Amnesty Program

October 07, 2025 at 12:13 PM EDT

If you're a U.S. expat who hasn't filed taxes in a while, you're not alone, and you're definitely not the first person to feel blindsided by the rules. A lot of Americans living abroad assume that if you’ve left the country, your tax obligations stay behind. Unfortunately, that’s not how the U.S. tax system works. The IRS still expects to hear from you every year, no matter how far you've wandered.

But there’s some good news. The IRS Streamlined Tax Amnesty Program is made specifically for people in your shoes. If your non-compliance was accidental (and you’re not already on the IRS’s radar), the program offers a way to catch up without penalties. It’s a second chance, basically. But, like all things IRS, there are conditions.

Let’s walk through the requirements to qualify for the program

First: You’re Still a U.S. Taxpayer

To apply, you need to be a U.S. citizen, green card holder, or someone who meets the “substantial presence” test. And yes, that includes dual citizens and people who haven’t lived in the U.S. in decades.

Second: Your Mistake Has to Be Non-Willful

This is the heart of the whole program. The IRS isn’t offering amnesty to people who intentionally hid money or lied on forms. They’re aiming this at people who simply didn’t know the rules or misunderstood them.

What counts as non-willful? Here are a few real-life examples:

You didn’t know U.S. citizens still had to file taxes while living abroad

You assumed paying tax in your new country meant you didn’t owe anything to the U.S.

Your accountant never mentioned FBARs or FATCA

You thought your local pension or savings account wasn’t the IRS’s business

You’ll need to write and sign a non-willful statement as part of the application. And you need to mean it. If the IRS finds evidence that you were knowingly avoiding compliance, this route closes fast and the consequences can be harsh.

Third: The IRS Can’t Have Contacted You Already

This is strictly a voluntary program. If you’ve already received an audit letter or any formal notice from the IRS about your unfiled returns or foreign accounts, you're no longer eligible for the streamlined option.

Fourth: You’ll Need to File 3 Years of Back Taxes

You will need to prepare and file three years of overdue federal returns. They need to be complete, meaning they include all your foreign income, relevant disclosures, and international forms (like 8938 for foreign assets or 5471 for foreign companies, if applicable).

In theory, you also need to pay any taxes from the overdue return, plus interest. But crucially, no penalties apply if your application is accepted.

Fifth: You May Need to File 6 Years of FBARs

If your foreign financial accounts, bank, investment, even some crypto topped $10,000 at any point in a year, you’re required to file FBARs for the last six years. These are separate from your tax return and can carry huge penalties if ignored but again, if your mistake was non-willful and you disclose through this program, the penalties are waived.

Sixth: You Must Meet the Residency Requirement (for Expats)

Most expats will qualify under the Streamlined Foreign Offshore Procedures, which don’t include any asset-based penalties. To be eligible, you need to have:

Lived outside the U.S. for at least 330 full days in one of the last three years

Been a resident of a foreign country during the years you didn’t file

If you don’t meet that standard, say you split your time between the U.S. and abroad you might still qualify under the Domestic Offshore Procedures, though those come with a 5% penalty on unreported foreign assets.

A Quick Word on Getting Help

Could you do this yourself? Technically, yes. Should you? That’s a harder call. The paperwork is dense, and the consequences of screwing it up are real. Consider an expat tax advisor from Expat Tax Online who will make sure you don’t miss forms, will help you draft a solid non-willful statement, and can help you avoid nasty surprises.

Final Thought

The IRS Streamlined Program is probably the most forgiving option you’ll get if you’ve fallen behind on your U.S. filings while living abroad. But it’s not automatic, and it’s not something to take lightly. If you think you qualify, don’t put it off especially since the IRS can shut this program down at any time.

It’s one of those things where getting it right once is a whole lot easier than trying to fix it later.

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