IRS Amnesty Programs: What They Are, Who Qualifies, and How to Get Back in Compliance

If you’ve recently discovered that living abroad doesn’t exempt you from U.S. tax obligations, you aren’t alone. Many U.S. expats are surprised to learn that the United States taxes based on citizenship, not just where you live. If you have fallen behind, you may have heard of an “IRS amnesty program.”

While the IRS doesn’t officially use that specific phrase for its primary relief options, it does offer several established pathways that allow you to catch up, often with zero penalties and a much lower risk than simply staying under the radar.

This guide breaks down the main relief and disclosure programs available for 2026. We’ll help you understand how they work and which path might fit your situation, so you can stop worrying and start moving forward with your life abroad.

Need expert help right now?

If you’re ready to stop worrying and start catching up, our specialists can guide you through the best path for your specific situation.

Is There an IRS Amnesty Program?

In short: There isn’t a single “amnesty” form, but the concept is very real.

The IRS doesn’t offer a one-size-fits-all “tax amnesty.” Instead, it maintains a series of compliance pathways designed to encourage taxpayers to voluntarily correct past mistakes before they are contacted for an audit.

Taxpayers often use the word “amnesty” because these official programs can:

Eliminate or significantly reduce penalties that would otherwise apply to late filings.
Offer protection against potential criminal prosecution for missed disclosures.
Provide a structured “lookback” period, so you don’t have to file every single missing year in your history.

The right program depends on one key factor: Was your noncompliance willful or non-willful?

Willful vs. Non-Willful: Why It Matters

The most important factor in choosing a program is your intent. This determines which “amnesty” options you qualify for and the level of penalty relief available.

Non-willful means you didn’t file or report correctly due to not knowing about the requirement (very common for expats), honest confusion about the rules, negligence, or relying on bad advice.
Willful means you knew you had an obligation and intentionally chose not to comply, for example, by deliberately hiding income or accounts.

Most U.S. expats who haven’t filed fall into the non-willful category. Many simply didn’t realize that Americans must file U.S. taxes no matter where they live.

IRS Programs for Non-Willful Noncompliance

If your failure to file was an honest mistake, you have several “penalty-free” or low-penalty options.

1. Streamlined Filing Compliance Procedures

This is the most common path for U.S. expats catching up on taxes. It’s designed for people who fell behind due to honest mistakes.

What you’ll need to do: File 3 years of back tax returns and 6 years of FBARs (Foreign Bank Account Reports), and sign a statement certifying your noncompliance was non-willful.
The Benefit: If you live abroad and qualify (the “Foreign Offshore” track), the IRS waives all late-filing and FBAR penalties entirely.
2026 Update: For the 2025 tax year (filed in 2026), the Foreign Earned Income Exclusion (FEIE) has increased to $130,000, meaning many expats will owe $0 in actual tax once they catch up.

This is the most common path for expats to address missed taxes.

2. Delinquent FBAR Submission Procedures

If you are current on your tax returns but missed filing FBARs (the annual report of foreign bank accounts), this is a simpler option. If you reported the income from these accounts but just missed the form, you can often file them late with a brief explanation and face no penalties.

This option only applies if you don’t also have unfiled or incorrect tax returns. If you need to fix both, the Streamlined Procedures are usually the better choice.

3. Delinquent International Information Return Procedures

This covers other missed international forms, such as Form 3520 (foreign gifts) or Form 5471 (foreign corporations). If you’ve filed your tax returns but forgot these specific forms, you can often submit them late with a “reasonable cause” statement to avoid penalties.

New for 2026: Automatic Penalty Relief (First-Time Abate)

In a major shift for the 2026 filing season, the IRS has announced that First-Time Abate (FTA) relief will now be automatic.

Note: This only applies to a single tax year. If you are several years behind, you still need to use a formal program such as the Streamlined Procedures.

What is it? FTA is an administrative waiver for people who have a clean compliance record for the previous three years but had a one-time slip-up (like filing or paying late).

The 2026 Change: Previously, you had to call or write to the IRS to request this. Starting in April 2026, for 2025 tax returns, the IRS system will automatically identify eligible taxpayers and waive the penalty without you having to ask.

IRS Programs for Willful Noncompliance

If your conduct might be viewed as intentional, the stakes are higher, but there is still a way to avoid the worst outcomes.

Voluntary Disclosure Practice (VDP)

The VDP is for those who intentionally avoided taxes and want to come forward before the IRS discovers the error.

What to expect: You will generally disclose the most recent 6 years of noncompliance.
The Benefit: While you will likely pay back taxes, interest, and a high civil penalty (potentially a 20% accuracy penalty for amended returns), the IRS typically will not recommend you for criminal prosecution.
2026 Update: The IRS has proposed a new “predictable” penalty framework for the VDP, with a 90-day public comment period ending on March 22, 2026.

Other Relief Options: The “Fresh Start” Tools

If you are compliant but owe more than you can pay, the IRS Fresh Start Program offers tools to manage the debt:

Offer in Compromise (OIC): This allows you to settle your total tax debt for less than the full amount if paying the full balance would create a serious financial hardship.
Installment Agreements: Monthly payment plans. In 2026, the IRS has sharpened online flows to make these easier to set up for balances up to $100,000.
Currently Not Collectible (CNC): A temporary pause on collections if you can prove paying would prevent you from covering basic living expenses.

Is there a Deadline for IRS Amnesty Programs?

Unlike some state tax amnesty programs that open and close within fixed windows, the federal programs described in this guide are ongoing. There is currently no announced end date for the Streamlined Procedures or the Voluntary Disclosure Practice.

However, “ongoing” does not mean “guaranteed.” Waiting comes with significant risks:

Interest is a Silent Debt-Builder: Even if you qualify for a $0 penalty program, interest on any tax owed begins accruing from the original due date. The longer you wait, the higher that balance climbs.
The “First Contact” Rule: To qualify for almost any relief program, you must come forward before the IRS contacts you for an audit or investigation. Once the IRS sends that first notice, your “amnesty” options vanish.
Rules Can (and Do) Change: The IRS has closed popular offshore programs in the past (such as the 2012 OVDP). There is always a risk that the Treasury could modify or end these procedures with very little notice.
Peace of Mind: The anxiety of being out of compliance doesn’t go away on its own. Getting compliant now allows you to move forward without the fear of a surprise letter in the mail.

Don’t wait for the IRS to find you.

Our team specializes in helping expats navigate these programs to minimize or eliminate penalties.

Which Program is Right for You?

Your Situation	Recommended Path	Primary Benefit
“I didn’t know I had to file.”	Streamlined Procedures	0% penalties for expats
“I just missed one year for the first time.”	Automatic First-Time Abate	Penalty waived automatically in 2026
“I filed taxes but missed the FBAR.”	Delinquent FBAR Procedures	Catch up penalty-free
“I knew I should file but didn’t.”	Voluntary Disclosure (VDP)	Avoids criminal charges
“I’m caught up but can’t afford the bill.”	Fresh Start / Installments	Pay over time or settle debt

Important Reminder: Transition relief is also available for the 2025 tax year regarding new reporting for “cash tips” and “overtime” under the One Big Beautiful Bill Act (OBBBA). If you’re an expat employer or employee affected by these new rules, the IRS is treating 2025 as a “transition year” with no penalties for reporting errors.

Next Step: Ready to see which path is right for you? We can help you determine if you qualify for the penalty-free Streamlined Procedures or if a simpler late-filing option is better. Learn about how Greenback Expat Tax Services can help you get caught up.

Stop Worrying About the Past and Start Your Future Abroad

Whether you are one year behind or ten, our expat-specialist accountants are ready to help you navigate the right relief program and secure your peace of mind.

Frequently Asked Questions

Who qualifies for IRS tax amnesty?

Eligibility depends on the specific path you choose. The Streamlined Procedures require that your failure to file was “non-willful” (an honest mistake) and that the IRS hasn’t already contacted you for an audit. The Voluntary Disclosure Practice is available for those who may have willfully avoided taxes but want to come forward before the IRS discovers the noncompliance.

Is there a specific tax amnesty for U.S. expats?

Yes. The Streamlined Foreign Offshore Procedures were created specifically for Americans living abroad. This is often the best “amnesty” path because it allows you to catch up on 3 years of tax returns and 6 years of FBARs with zero penalties, provided you meet the residency requirements (living outside the U.S. for at least 330 days in one of the last three years).

What happens if I don’t catch up on my taxes?

Staying out of compliance carries several risks:
– Financial: Penalties and interest continue to grow daily.
– Travel: For the 2026 tax year, the IRS can trigger passport revocation if your “seriously delinquent” tax debt exceeds $66,000.
– Legal: You lose the ability to use “penalty-free” programs once the IRS initiates an audit or investigation against you

How many years of back taxes do I have to file?

One of the biggest benefits of these programs is the “limited lookback.” For example, the Streamlined Procedures usually only require the last 3 years of tax returns and 6 years of FBARs. This effectively “forgives” any older years, provided you remain compliant going forward.

I only missed one year, do I need a full amnesty program?

Not necessarily. If you have been compliant for the past three years and only missed your 2025 filing, you may qualify for the Automatic First-Time Abate in 2026. The IRS will now automatically waive the penalty for a first-time slip-up, so you may not need to file a formal “amnesty” application at all.

Will catching up cost me a lot in back taxes?

Actually, most U.S. expats owe very little. For the 2025 filing season (filed in 2026), the Foreign Earned Income Exclusion has risen to $130,000. Between this exclusion and the Foreign Tax Credit, the majority of our clients find that their primary cost is the professional fee to get the paperwork done correctly, rather than the tax bill itself.