What Is the Penalty for Not Filing Taxes as a U.S. Citizen Abroad?
U.S. citizens living abroad face the same federal filing penalties as domestic taxpayers, plus additional penalties for unreported foreign accounts and assets. The IRS charges a failure-to-file penalty of 5% of unpaid tax per month (up to 25%) and a failure-to-pay penalty of 0.5% per month (up to 25%). If a return is more than 60 days late, the minimum penalty is $525 or 100% of the tax owed, whichever is less.
Penalties specific to expats and international filers:
- FBAR (FinCEN 114): Up to $10,000 per account per year for non-willful failure to report foreign accounts over $10,000 in aggregate. Willful violations can reach $100,000 or 50% of the account balance.
- FATCA (Form 8938): $10,000 for failure to file, plus an additional $10,000 for each 30-day period of non-filing after IRS notice, up to $50,000.
- International information returns (Form 5471, Form 3520, Form 8865): $10,000 or more per form per year.
- Passport revocation: Tax debt over $66,000 (2026 threshold) can trigger State Department certification to deny or revoke your passport.
| Penalty | Rate | Cap |
| Failure to file | 5% of unpaid tax per month | 25% |
| Failure to pay | 0.5% of unpaid tax per month | 25% |
| Combined maximum | 5% per month (first 5 months) | 47.5% of tax owed |
| FBAR (non-willful) | $10,000 per account per year | No cap on years |
| FATCA (Form 8938) | $10,000 initial + $10,000/30 days | $60,000 |
| Minimum late penalty (60+ days) | $525 or 100% of tax | Whichever is less |
Many expats owe zero U.S. tax after applying the Foreign Earned Income Exclusion or Foreign Tax Credit. If you owe no tax, failure-to-file and failure-to-pay penalties do not apply. However, FBAR and FATCA penalties are assessed independently of whether you owe tax.
The Streamlined Filing Compliance Procedures eliminate all penalties for non-willful late filers living abroad.
Last updated on April 29, 2026
