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The actor, known for his work on sitcom Home Improvement and voicing Toy Story's Buzz Lightyear, will also star in the film with Ray Liotta, Carrie-Anne Moss, Julie Bowen and Kelsey Grammer.
The adult comedy casts Allen as a prisoner on parole who finds that life with his sister is much crazier than being incarcerated.
Allen recently completed work on David Mamet's mixed-martial arts movie Redbelt and the comedy The Six Wives of Henry Lefay.
Crazy on the Outside begins filming in Los Angeles this March.
