Many Americans living abroad, including thousands in Israel, have fallen behind on their U.S. tax filings. If you are one of them, there is a clear, safe solution: the IRS allows U.S. expats to become compliant without penalties through the Streamlined Filing Compliance Procedures.
In addition, there is a time-limited opportunity: U.S. expats who file now can also claim the $1,400 stimulus payment issued during the COVID-19 pandemic. The deadline to claim the stimulus is June 16, 2025. After that date, the money is permanently lost.
How the IRS Amnesty Program Works
The IRS’s Streamlined Procedures allow U.S. citizens abroad to file three years of late U.S. tax returns and six years of FBARs (foreign bank account reports) — without any penalties — if they certify that their non-compliance was not intentional.
This program has been available for years and provides a clear, tested process to fix past non-filing issues. Expats who complete the required filings correctly under this program can achieve full tax compliance safely.
"There’s no need for fear," says Olivier Wagner, founder of 1040 Abroad, one of the leading U.S. Expat Tax firms. "We've helped thousands of Americans become compliant without penalties. Right now, they can also claim the $1,400 stimulus check, which often covers much of the cost of catching up."
Working with professionals experienced in taxes for expats ensures that the filings are accurate and meet the specific requirements of the amnesty program.
1040 Abroad proudly offers free tax advice to all U.S. expats, helping them understand their options clearly before committing to any filing.
Why Filing Now Is a Financial Advantage
Expats who file a 2021 U.S. tax return by June 16, 2025, can claim the $1,400 Economic Impact Payment. This stimulus check, part of the U.S. COVID-19 relief measures, is available even to those who have not filed recent tax returns — but only if action is taken before the deadline.
Many expats have already used this refund to offset the cost of preparing and submitting their back taxes. Filing now means resolving your compliance issues and receiving money you are legally entitled to.
Once the deadline passes, the opportunity to claim the stimulus payment will be gone permanently.
Why Compliance Is More Important Than Ever
Foreign banks increasingly require U.S. expats to provide proof of tax compliance to open or maintain accounts. Under regulations like FATCA, financial institutions must report American account holders to the IRS.
Expats without up-to-date tax filings may face difficulties accessing banking services, investments, and even mortgages. Filing through the amnesty program protects financial freedom and ensures access to international banking and investment opportunities.
Becoming compliant now is a proactive way to eliminate future risks and complications.
Compliance and Renunciation: What You Need to Know
Tax compliance is a mandatory first step for expats considering renouncing U.S. citizenship.You must certify five years of U.S. tax filings to complete the renunciation process, and the U.S. government charges a $2,350 renunciation fee.
Filing through the amnesty program not only fulfills the IRS requirements for renunciation but also allows expats to claim the $1,400 stimulus payment, reducing the overall cost of the process. Many individuals find that by using this opportunity now, they effectively lower their net out-of-pocket expenses related to renouncing.
In addition to the financial benefit, being fully compliant ensures a smooth and faster renunciation process. Without proper tax filings, renouncing can become delayed or even denied. Expats planning this step should act quickly to maximize the advantages available under the current rules.
Why Acting Today Makes Financial Sense
Right now, there's a unique opportunity: you can become fully compliant with the IRS, avoid penalties, and still claim the $1,400 stimulus check from the COVID-19 pandemic — if you act before June 16, 2025.
At 1040 Abroad, we’ve already helped thousands of expats through this process, and I can confidently say: it’s much easier — and much more rewarding — than you probably think. Filing now allows expats to fix their tax record, claim money owed to them, protect their financial access abroad, and move forward without fear.
For Americans living overseas — including the strong expat community in Israel — this is the best time in years to become fully compliant and secure financial peace of mind.
This article was written in cooperation with Bazoom