IRS relief procedures for certain former citizens (2026 guide)
The IRS relief procedures for certain former citizens are still available, for eligible former US citizens who relinquished citizenship after March 18, 2010.
-
Who qualifies? To qualify, you generally must have non-willful conduct, no filing history as a US citizen or resident, net worth under $2,000,000, and aggregate US tax of $25,000 or less for the expatriation year plus the 5 prior tax years.
A Form 1040-NR filed under a good-faith belief that you were not a US citizen does not, by itself, count as US citizen or resident filing history for this procedure. - What do you file? You file the expatriation-year return, 5 prior-year returns, the expatriation statement, required information returns, and FBARs if required. No SSN is required for this IRS relief procedure, and no payment is due if the IRS accepts the submission.
- Does giving up citizenship close your tax file? Giving up US citizenship does not automatically close your US tax file. A former citizen can still have 6 years of returns, information forms, and foreign account reports to fix before the IRS treats the expatriation as clean for tax purposes.
The relief for certain former citizens was created for a narrow group: former US citizens whose past filing failures were non-willful and whose US tax exposure is small. It does not apply to long-term green card holders, even though expatriation tax rules and the expatriation statement can apply to certain long-term residents in other contexts.
The 2026 update is important. The IRS program itself has not been replaced, but the 2026 covered-expatriate tax-liability threshold increased to $211,000, and the 2026 mark-to-market exclusion increased to $910,000. For a 2025 expatriation-year package filed in 2026, the current IRS 8854 form instructions use the 2025 figures: $206,000 and $890,000.
Eligibility criteria for this IRS relief
The IRS relief procedure has 7 core eligibility requirements for former US citizens: expatriation after March 18, 2010; non-willful conduct; no filing history as a US citizen or resident; average annual net income tax liability not above the IRC 877(a)(2)(A) threshold; net worth under $2,000,000 on both required dates; aggregate US tax of $25,000 or less for 6 tax years; and a complete 6-year filing package.
The controlling question is not whether someone had a legal defense in court; it is whether the person meets every IRS requirement for this specific procedure.
The key decision rule is simple: you may qualify only if every IRS requirement is met, and one missed requirement can move the submission into normal IRS processing.
| Category | You may qualify | You do not qualify |
|---|---|---|
| Citizenship status | You were a US citizen and relinquished citizenship after March 18, 2010 | You are only a long-term green card holder or other noncitizen expatriate |
| Conduct | Your failure was non-willful because of negligence, mistake, inadvertence, or good-faith misunderstanding | You knowingly hid income, accounts, entities, or tax obligations |
| Filing history | You have no filing history as a US citizen or resident for the 6 covered years | You already filed US citizen or resident income tax returns, unless your only prior filing was Form 1040-NR filed under a good-faith belief that you were not a US citizen. FAQ 24 and FAQ 25 are separate late-Form 8854 paths for certain otherwise compliant taxpayers – they are not relief-procedure exceptions. |
| Net worth | You were under $2,000,000 on the expatriation date and remain under $2,000,000 when submitting | You were $2,000,000 or more on either date |
| Tax cap | Total US tax across the expatriation year, plus 5 prior years, is $25,000 or less after credits and exclusions | Total US tax across those 6 years is more than $25,000 |
| Filing package | You submit the expatriation year, 5 prior years, required information returns, and required foreign account reports | You submit a partial package or omit required documents |
Based on our client scenario at TFX: A former US citizen living in France expatriated on July 10, 2025. Her US tax after foreign tax credits for 2020–2025 was $0, $0, $1,200, $0, $3,600, and $900, for a 6-year aggregate of $5,700. That is below the $25,000 cap, so the tax amount does not block eligibility, assuming all other requirements are met.
For a deeper look at the certification form used in expatriation cases, review our guide to Form 8854 for former US citizens
Who qualifies
A former US citizen may qualify if they relinquished US citizenship after March 18, 2010, can show non-willful conduct, and can submit the expatriation year plus the 5 prior tax years. The package must include the certification form required to satisfy the 5-year compliance test.
The following 7 requirements must be checked before preparing a submission under the relief procedures for certain former citizens.
Every qualifying case must meet all 7 requirements, including the $2,000,000 net worth limit and the $25,000 aggregate tax cap.
| Requirement | What it means | Proof or form |
|---|---|---|
| Former US citizen | You relinquished or renounced US citizenship, or had a qualifying court order | Approved CLN, Form DS-4083, or qualifying court order |
| Expatriation date after March 18, 2010 | The date on the CLN or court order must be after the FATCA enactment date | CLN date or court order date |
| Non-willful conduct | The failure came from mistake, negligence, inadvertence, or good-faith misunderstanding | Signed returns and factual explanation within the submission |
| No US citizen/resident filing history | You did not file US citizen or resident income tax returns for the covered years | IRS account history and return preparation review |
| Net worth under $2,000,000 | Worldwide assets minus liabilities are below $2,000,000 on both required dates | Balance sheet and asset support |
| Aggregate tax of $25,000 or less | Total US tax after deductions, exclusions, exemptions, and credits is $25,000 or less for 6 years | Completed 6-year return package |
| Complete filing package | You file the expatriation year and 5 prior years, plus information returns and FBARs if required | Dual-status return, 5 Forms 1040, information returns, and required FBAR filings |
In many former-citizen relief cases, the expatriation year is filed as a dual-status year with Form 1040-NR as the main return and Form 1040 attached as the dual-status statement for the resident/citizen part of the year. If the person is still a US resident at year-end, the main return can instead be Form 1040 with Form 1040-NR attached as the statement. You can review our guide to renouncing US citizenship for the civil process that usually produces the CLN.
The IRS 8854 form is not optional in this process. It is the form the IRS uses to let a former citizen certify compliance for the 5 tax years before expatriation and avoid the certification-test failure that can create covered expatriate status.
Who does not qualify
A person does not qualify if any 1 of the IRS requirements fails, including the $25,000 tax cap, the $2,000,000 net worth cap, or the US-citizen filing history rule. Long-term residents are also outside this relief path, even though the expatriation tax system can apply to certain long-term green card holders.
The following 7 disqualifiers commonly block this relief path.
- Tax over $25,000 across the expatriation year and the 5 prior tax years.
- Worldwide net worth of $2,000,000 or more on the expatriation date or the submission date.
- Willful conduct, including deliberate hiding of foreign accounts, income, entities, or US status.
- Prior US citizen or resident filing history for the covered years, except for narrow IRS FAQ 24 or FAQ 25 situations.
- Long-term green card or other long-term resident case, rather than a former citizen case.
- Expatriation date on or before March 18, 2010.
- Incomplete submission, such as missing proof of loss of nationality, missing returns, or missing required information returns.
The filing-history rule has 1 useful nuance. If someone filed Form 1040-NR under a good-faith belief that they were not a US citizen, the IRS says that does not count as filing history as a US citizen or resident for this procedure.
Covered expatriate rules can still matter if you do not qualify. See our US exit tax guide for expatriates for how the $2,000,000 net worth test, average annual net income tax test, and certification test work outside this relief path.
What does non-willful mean in practice?
Non-willful conduct means the failure was due to negligence, inadvertence, mistake, or a good-faith misunderstanding of US tax law. For this IRS relief procedure, the distinction matters because willful conduct blocks relief even when the taxpayer is under both the $25,000 tax cap and the $2,000,000 net worth cap.
The following 4 examples show the difference between non-willful and willful behavior in former-citizen cases.
Non-willful conduct is usually about misunderstanding or mistake; willful conduct is usually about knowing concealment.
| Situation | Likely treatment | Why it matters |
|---|---|---|
| Accidental American born in the US, raised abroad, and unaware of US filing duties | Often non-willful if facts support the claim | The person may not have known US citizenship created worldwide filing obligations |
| Dual citizen who learned about US tax only after a bank requested an SSN or CLN | Often non-willful if no concealment occurred | FATCA bank checks can surface missed obligations years later |
| Former citizen who relied on a local accountant who handled only local tax | Often non-willful if reliance was reasonable and complete facts were shared | Bad or incomplete advice can support good-faith misunderstanding |
| Taxpayer who moved funds between accounts to avoid FATCA reporting or IRS detection | Likely willful | Deliberate concealment can block relief and may require a different disclosure route |
Based on our client scenario at TFX: A dual citizen in the Netherlands never had a US passport, paid Dutch tax every year, and learned about US filing duties only after a bank asked for a US SSN in 2025. Those facts may support a non-willful explanation if the return package is complete and consistent.
Accidental Americans are a common fit for this discussion because citizenship can exist even when a person has lived outside the US for nearly all of their life. See our accidental Americans tax guide for more background on how citizenship-based taxation affects people born or raised abroad.
Advantages of using the relief procedures
The main advantage is that an eligible former citizen can avoid covered expatriate status and receive relief from unpaid tax, penalties, and interest for the covered years. The program is also narrower and more predictable than many late-filing routes because it uses a fixed 6-year package, a $25,000 aggregate tax cap, and a $2,000,000 net worth cap.
NOTE! The March 18, 2010 date is not the date the program began. The IRS announced the procedures in September 2019, and March 18, 2010, is the expatriation date cutoff tied to FATCA.
The following 4 benefits explain why the IRS relief procedure can be valuable for a qualifying former citizen.
- Avoid covered expatriate status if the IRS reviews the package and confirms that the taxpayer meets the relief-procedure eligibility criteria and that the submission was received and complete.
- Avoid payment of the unpaid tax, penalties, and interest for the covered years if the submission qualifies.
- Submit without an SSN by leaving the SSN boxes blank, with an ITIN included only if one already exists.
- Use a defined 6-year package instead of trying to rebuild decades of US tax filings.
The fee to request a CLN from the Department of State changed in 2026. Effective April 13, 2026, the CLN administrative processing fee was reduced from $2,350 to $450, but that fee change does not change the IRS qualification tests.
How the relief for former citizens works
The relief process works by filing a complete 6-year tax package with proof that US citizenship ended after March 18, 2010. For a 2025 expatriation income year, the submission generally includes a dual-status 2025 return, 2020–2024 Forms 1040, the expatriation statement, required information returns, and FBARs if the filing threshold was met.
A complete package is critical because the IRS says partial or incomplete submissions are handled under normal processing rules. That can mean regular taxes, penalties, and interest instead of relief.
The IRS 8854 form should be prepared with the same care as the income tax returns because it ties the citizenship loss date, 5-year certification, balance sheet, and covered expatriate analysis together. A mismatch between the CLN date, return dates, and balance sheet can slow review or create a risk question.
Documents to prepare
A complete submission usually has 7 document categories: proof of loss of nationality, identification, the expatriation-year dual-status return, 5 prior-year returns, required information returns, required FBARs, and the signed certification materials. For a 2025 expatriation, the income tax years normally run from 2020 through 2025.
The following 7 document groups should be gathered before the returns are assembled.
- Approved Certificate of Loss of Nationality, Form DS-4083, showing a post-March 18, 2010 expatriation date, or a qualifying court order.
- Valid passport, or birth certificate plus government-issued ID.
- Expatriation-year Form 1040-NR marked as a dual-status return.
- Form 1040 attached as the dual-status statement reporting worldwide income through the day before expatriation.
- The required expatriation statement and all required information returns, including Form 8938 where applicable.
- 5 prior-year Forms 1040 with all required schedules and information returns.
- FBARs filed electronically through FinCEN if aggregate foreign accounts exceeded $10,000 at any time in a covered calendar year.
Former citizens who need to file a dual-status Form 1040-NR can review our Form 1040-NR guide for nonresident filers. If foreign bank accounts are part of the case, see our FBAR filing guide for foreign accounts before preparing FinCEN Form 114.
Where and how to submit
The IRS requires the relief package to be mailed to the Austin address for this procedure, with “Relief for Certain Former Citizens” written in red across the top of each return if possible. No preclearance is required, and the IRS says not to request a placeholder for a future submission.
Mail the package to:
Internal Revenue Service
3651 South I-H 35
Mail Stop 4301 AUSC
Attn: Relief for Certain Former Citizens
Austin, TX 78741
The following 5 submission rules reduce processing problems.
- Write “Relief for Certain Former Citizens” in red at the top of each return if possible.
- Do not submit the package before the CLN or qualifying court order is available.
- Do not send a check if the submission qualifies for relief.
- Leave SSN boxes blank if the former citizen never had an SSN.
- Include an ITIN only if one was already issued.
FBARs are not mailed with the tax package. If required, they are filed electronically through the FinCEN BSA E-Filing System, using “Other” as the reason for late filing and “Relief for Certain Expatriates procedures” in the explanation box.
Relief procedures checklist: forms, years, and documents
The checklist for relief procedures has 8 practical items: CLN or court order, ID, dual-status expatriation-year return, Form 1040 statement, expatriation statement, 5 prior-year returns, information returns, and FBARs if required. For a 2025 expatriation, this usually means 2025 plus 2020–2024.
For a 2025 expatriation-year package, the IRS expects 6 tax years of returns plus proof of loss of nationality and any required foreign reporting.
| Required item | Applies to | Notes |
|---|---|---|
| Approved CLN, Form DS-4083, or court order | Proof of citizenship loss | Date must show expatriation after March 18, 2010 |
| Passport or birth certificate plus ID | Identity proof | Submit a copy, not the original |
| Form 1040-NR | Year of expatriation | Main dual-status return when nonresident at year-end |
| Form 1040 attachment | Year of expatriation | Reports worldwide income through the day before expatriation |
| Form 8854 | Year of expatriation | Used to certify 5 prior years and report expatriation details |
| Forms 1040 | 5 tax years before expatriation | Include all schedules and required information returns |
| Information returns | Years where required | Common examples include Form 8938, Form 5471, Form 3520, or Form 8621 |
| FBAR, FinCEN Form 114 | Calendar years where required | File electronically if foreign accounts exceeded $10,000 in aggregate at any time |
So, what is the IRS 8854 form in this process? It is the expatriation statement used to report the expatriation date, citizenship status, 5-year tax liability figures, net worth, and certification of prior tax compliance. A former citizen uses it to satisfy the certification test when the rest of the relief package is complete.
The 2025 FBAR filing deadline was April 15, 2026, with an automatic extension to October 15, 2026. That annual FBAR deadline is separate from the mailed relief package, but filing required FBARs before or at the same time as the relief submission helps preserve the penalty relief described by the IRS.
Covered expatriate status and how to avoid it
Covered expatriate status can apply if a former citizen meets 1 of 3 tests: the average annual net income tax liability test, the $2,000,000 net worth test, or the 5-year certification test. The relief procedures can help only with the certification problem and only when the taxpayer also meets the relief program’s separate $25,000 aggregate tax cap and other rules.
For 2025 expatriations, the average annual net income tax liability threshold is more than $206,000, and the mark-to-market exclusion is $890,000. For 2026 expatriations, those figures are more than $211,000 and $910,000.
The covered expatriate tests are separate, and failing any 1 test can create exit-tax exposure unless a specific exception applies.
| Covered expatriate test | 2025 threshold or rule | How the relief procedures can help |
|---|---|---|
| Average annual net income tax liability | More than $206,000 for the 5 tax years ending before expatriation | Relief does not erase this test, but someone under the $25,000 aggregate relief cap should generally be far below it |
| Net worth test | $2,000,000 or more on the expatriation date | Relief is unavailable unless net worth is below $2,000,000 on both the expatriation date and submission date |
| Certification test | Failure to certify 5 years of federal tax compliance | Relief provides an alternative way to satisfy the certification process if all program rules are met |
A covered expatriate is generally treated as selling worldwide assets at fair market value on the day before expatriation, subject to detailed rules and exceptions. That mark-to-market system can affect investments, business interests, pensions, deferred compensation, and trust interests.
The $2,000,000 relief limit has no exception in this procedure. Even if a dual citizen or certain minor exception might help under the general covered expatriate rules, it does not override the relief procedure’s net worth requirement.
To compare the exit-tax tests against this narrower relief path, see our US exit tax guide for covered expatriates.
What to expect after you file for relief
After you mail the package, the IRS reviews whether the submission was received and complete, and it may check the information against other sources. The IRS says to allow at least 2 months before contacting them if no response has arrived, but a response is not the same as a blanket audit shield or guaranteed acceptance.
The following 4-step timeline is a realistic way to frame the process.
- The taxpayer mails the complete package to the Austin address and keeps proof of mailing.
- The IRS receives the package and routes it for relief-procedure handling.
- The IRS may review eligibility, completeness, and consistency with information from banks, tax forms, or other sources.
- If the IRS confirms eligibility and completeness, it sends a letter notifying the taxpayer that the submission was received and is complete.
The following 6 records should stay together after submission.
- Copy of the approved CLN or qualifying court order.
- Full copy of the mailed relief package.
- Proof of mailing and delivery tracking.
- FBAR confirmation pages from FinCEN.
- Copies of foreign tax returns used to support foreign tax credits.
- Any IRS letters or follow-up requests.
Alternative options to the relief procedure
Not every former citizen fits the relief procedure, and the right alternative depends on 5 factors: citizenship status, willfulness, residency, prior filing history, and whether returns or FBARs were missed. The main alternatives are Streamlined Foreign Offshore Procedures, Streamlined Domestic Offshore Procedures, IRS Criminal Investigation Voluntary Disclosure Practice, delinquent FBAR or information-return procedures, and traditional amended returns.
The old Offshore Voluntary Disclosure Program closed in 2018, so “OVDP” should not be described as an active program. For willful cases, the current formal route is IRS Criminal Investigation Voluntary Disclosure Practice, often called CI VDP.
The best route depends on whether the taxpayer is non-willful, already filed returns, lives abroad, and needs 3 years, 6 years, or a broader disclosure period.
| Program | Best fit | What is filed | Penalty result |
|---|---|---|---|
| Relief procedures for certain former citizens | Former US citizens with no US citizen/resident filing history, non-willful conduct, net worth under $2,000,000, and aggregate tax of $25,000 or less | Expatriation year, 5 prior-year returns, expatriation statement, information returns, and FBARs if required | No unpaid tax, penalties, or interest if eligible and complete |
| Streamlined Foreign Offshore Procedures | Non-willful US taxpayers living outside the US who need to catch up | 3 years of returns and 6 years of FBARs | No failure-to-file, failure-to-pay, accuracy-related, information-return, or FBAR penalties if the taxpayer is eligible for SFOP and follows all instructions. The IRS does not send an acceptance letter or sign a closing agreement, and prior penalty assessments are not automatically removed. |
| Streamlined Domestic Offshore Procedures | Non-willful US taxpayers living in the US who previously filed returns but missed foreign income or assets | 3 years of amended returns and 6 years of FBARs | 5% miscellaneous offshore penalty, with other listed penalties generally avoided if requirements are met |
| CI Voluntary Disclosure Practice | Willful taxpayers seeking a route that may reduce criminal prosecution risk | Form 14457 preclearance process, disclosure documents, returns, FBARs, tax, interest, and penalties | Civil penalties apply; timely, truthful, and complete disclosure is considered by the IRS Criminal Investigation |
| Traditional amended returns | Taxpayers correcting specific filed returns outside a formal offshore program | Form 1040-X for each affected year | Regular tax, interest, and penalties may apply |
| Delinquent FBAR or information-return procedures | Narrow cases with missed FBARs or international information returns and no unpaid tax issue | FBARs through FinCEN or information returns through normal filing procedures | Penalty treatment depends on eligibility, facts, and IRS review |
A former citizen who still has US filing duties after expatriation may need a different path if they do not meet every relief requirement. See our guides to IRS tax amnesty programs for expats for a clearer comparison.
The term “voluntary disclosure” can be confusing because several older offshore programs used similar language. For historical context, see our OVDP article for expats, but use current IRS CI VDP guidance for active willful-disclosure cases.
When to seek professional help
You should get professional help when 1 mistake could change eligibility, such as a wrong expatriation date, incomplete dual-status return, missed FBAR, weak non-willful explanation, or incorrect $25,000 tax-cap calculation. These cases require more than data entry because the tax forms, citizenship documents, and foreign reporting history must align.
The following 6 situations are strong signs that a review is worth it.
- You are not sure whether you were a US citizen for all 6 covered years.
- Your net worth is near $2,000,000 on either the expatriation date or submission date.
- Your aggregate US tax is close to $25,000 after foreign tax credits and exclusions.
- You had foreign mutual funds, pensions, corporations, trusts, or crypto accounts.
- You need FBARs and Form 8938 reviewed together for the same years.
- You already filed some US returns or missed only the expatriation statement.
Based on our client scenario at TFX: A former citizen in Singapore had low salary tax exposure but held non-US mutual funds and a small foreign company. The income tax looked below $25,000, but the information returns and PFIC review changed the preparation plan because the 6-year package had to be complete, not just low-tax.
If your facts do not fit this program, Streamlined may still work. Review our Streamlined filing compliance procedures guide to compare a 3-year return package and 6-year FBAR package against this former-citizen relief path.
FAQ
A minor can use the procedure only if they have an approved loss of US citizenship and meet all IRS requirements, including the post-March 18, 2010 expatriation date. The Department of State gives extra scrutiny to minors, presumes children under 16 usually lack the required maturity and intent, and says minors may wish to wait until age 18 unless emergent circumstances exist.
The $2,000,000 limit applies twice: on the expatriation date and on the date the relief submission is made. The IRS applies this net worth limit without exceptions for this program, even though certain dual-citizen and minor exceptions can matter under general covered expatriate rules.
Yes. The IRS says a former citizen who never had an SSN may still submit under this procedure by leaving the SSN boxes blank. If an ITIN was already issued by mistake or in an earlier filing context, include that ITIN on the submission.
No payment is required if you are eligible for the procedure. The $25,000 figure is a cap used to test eligibility across 6 tax years, not an amount you automatically send with the submission.
Yes, but only if you qualify and file the required FBARs before or at the same time as the relief submission. The IRS says FBAR filing is not an eligibility criterion, but if you had an FBAR requirement and failed to file, FBAR penalties may be asserted if the submission is selected for examination.
No. Long-term green card holders can be subject to expatriation tax rules and may need the expatriation statement when they terminate long-term residency, but this specific relief path is only for certain former US citizens.
A prior US citizen or resident filing history generally blocks this procedure. If you filed only Form 1040-NR under a good-faith belief that you were not a US citizen, the IRS says that alone does not count as US citizen or resident filing history for this program.
IRS FAQ 24 may help some taxpayers who were otherwise compliant for the 5 years before expatriation but missed the expatriation statement. That is a separate late-filing path and does not provide the same automatic response as the relief procedures.
Mail the relief package to the IRS at 3651 South I-H 35, Mail Stop 4301 AUSC, Attn: Relief for Certain Former Citizens, Austin, TX 78741. Write “Relief for Certain Former Citizens” in red across the top of each return if possible.
The IRS says to allow at least 2 months before contacting them if you have not received a response. That timing is a minimum expectation, not a guaranteed processing deadline.
