Haven't Filed U.S. Taxes in Years? Here's What to Do in 2026

I hear it all the time: "I've been living abroad for years and didn't know I had to file U.S. taxes. Am I in trouble?"

If this sounds like you, take a deep breath. You're not alone, and there's a clear path forward.

With the 2026 tax season approaching (for tax year 2025), now is the perfect time to get back into compliance before the April 15, 2026 deadline.

First, Don't Panic

Many Americans abroad genuinely don't know they have U.S. filing obligations. The U.S. is one of only two countries in the world that taxes citizens on worldwide income regardless of where they live (Eritrea is the other).

The IRS recognizes this and has created programs specifically to help well-intentioned expats get back into compliance without facing severe penalties.

Understanding Your Situation

Before we talk solutions, let's assess where you stand:

1. How many years have you missed?
2. Did you have U.S.-source income during those years?
3. Do you have foreign bank accounts exceeding $10,000? (FBAR requirement)
4. Was your failure to file willful or non-willful?

That last question is the most important one.

Willful vs. Non-Willful

Non-willful means you didn't file due to negligence, inadvertence, or genuine misunderstanding — not intentional disregard.

Examples of non-willful conduct:

• You didn't know U.S. citizens abroad had to file
• You were overwhelmed and kept putting it off
• You thought you didn't earn enough to file
• You mistakenly believed a tax treaty exempted you

Willful means you knew about your obligation and consciously chose not to comply.

The distinction matters because the programs available to non-willful taxpayers are much more favorable.

The Streamlined Filing Compliance Procedures

If your failure to file was non-willful, the Streamlined Filing Compliance Procedures is likely your best option. This IRS program allows you to:

• File the last 3 years of tax returns
• File the last 6 years of FBARs
• Avoid all penalties (for the "foreign" track)

Yes, you read that right. If you qualify for the Streamlined Foreign Offshore Procedures (you must live abroad), there is no penalty.

Requirements for Streamlined Foreign

To use the Streamlined Foreign Offshore Procedures, you must:

1. Be a U.S. citizen, lawful permanent resident, or meet the substantial presence test
2. Have lived outside the U.S. for at least 330 days in one of the past three years
3. Not be under IRS examination or investigation
4. Certify that your failure to file was non-willful

What You'll File

Under the Streamlined program, you submit:

• 3 years of amended or delinquent tax returns (Form 1040)
• 6 years of FBARs (if required)
• Form 14653 — Certification by U.S. Person Residing Outside of the United States
• Any other required forms (Form 8938, 3520, etc.)

You'll also pay any taxes due, plus interest (but no penalties).

What If You Live in the U.S.?

If you've moved back to the U.S. or don't meet the 330-day requirement, you may need to use the Streamlined Domestic Offshore Procedures. This version has a 5% penalty on certain foreign assets, but it's still far better than standard penalties.

Key Deadlines for 2026

If you're getting back into compliance for the 2026 tax season, here are the key dates:

• April 15, 2026: Tax return deadline (automatic extension to June 15 for expats)
• June 15, 2026: Extended deadline for U.S. citizens abroad
• October 15, 2026: Final extension deadline (if requested) and FBAR deadline
• Streamlined submissions: Can be filed any time — no deadline

What If You Owe Money?

Here's something that surprises many expats: you may not owe anything.

Between the Foreign Earned Income Exclusion ($130,000 for 2025) and the Foreign Tax Credit, most Americans abroad have little or no U.S. tax liability. You still need to file, but filing doesn't always mean paying.

If you do owe taxes, you'll pay the tax plus interest. The key benefit of the Streamlined program is avoiding penalties.

What About FBARs?

If you had foreign accounts exceeding $10,000 in aggregate, you should have been filing FBARs. Under the Streamlined program, you'll file 6 years of delinquent FBARs.

The normal FBAR penalty for non-willful violations is up to $10,000 per account, per year. Under the Streamlined Foreign program, this penalty is waived entirely.

Do NOT File "Quietly"

Some people think they can just start filing going forward and hope the IRS doesn't notice the missing years. This is called "quiet disclosure" and the IRS has explicitly warned against it.

Quiet disclosure isn't a formal program. If the IRS discovers your previous non-compliance, you won't get the benefit of the Streamlined procedures. You could face full penalties.

The Streamlined program exists precisely for this situation. Use it.

The Delinquent FBAR Procedure

If your only issue is missed FBARs (meaning you filed your tax returns but forgot the FBAR), there's a separate Delinquent FBAR Submission Procedure. This lets you file late FBARs with a reasonable cause statement, typically without penalty.

When Streamlined Isn't Available

The Streamlined program isn't for everyone. You can't use it if:

• You're already under IRS audit or investigation
• Your conduct was willful
• The IRS has reached out to you about your taxes

If you're in one of these situations, other options exist — including the Voluntary Disclosure Program — but they're more complex and may involve penalties. Consult with a tax professional.

The Cost of Waiting

The longer you wait, the more interest accumulates on any taxes owed. More importantly, you're technically in violation every day you don't file.

While the IRS has been understanding about non-willful expat non-compliance, that goodwill isn't guaranteed forever. Congress periodically discusses increasing expat reporting requirements and penalties.

The best time to get compliant was years ago. The second best time is now.

How to Get Started

Here's a practical roadmap:

1. Gather documents for the past 3 years: income records, foreign tax statements, bank statements showing account balances
2. Calculate your income and taxes for each year
3. Determine FBAR requirements by reviewing your foreign account balances
4. Prepare the returns and certifications
5. File everything together through the Streamlined program

If this feels overwhelming, you don't have to do it alone. I help Americans abroad work through this process every day.

The Relief After Filing

I can't tell you how many clients have told me about the weight lifted from their shoulders after getting compliant. The stress of wondering "what if the IRS finds me" disappears.

You can open bank accounts abroad more easily, apply for mortgages, and just generally stop worrying.

The Bottom Line

If you haven't filed U.S. taxes while living abroad, you're not a criminal. You're someone who fell behind on an obligation that many people don't even know exists.

The IRS has given you a clear path to get right. The Streamlined Foreign Offshore Procedures make it possible to catch up without penalties, as long as your non-compliance was non-willful.

Don't let another year pass. Let's get you sorted.