For many Americans, the idea of living abroad is exciting—new cultures, new opportunities, and perhaps even a lower cost of living. But before packing your bags, it’s crucial to understand how moving outside the United States affects your tax situation. The U.S. tax system is unique in its reach, and living abroad brings both new obligations and potential benefits.

To assist Americans living overseas, the IRS offers several compliance programs, one of which is the Streamlined Foreign Offshore Procedures. But what does this entail?