Tax Questions
Ask your questions about Tax and FBAR here.
This thread will be focused closely on tax questions and answers. If the conversation starts to ramble, those comments will be moved to another thread.
Related threads:
Tax Discussion Thread. Instead of focusing on specific questions and specific cases, broader ideas can be discussed on the Tax Discussion Thread.
Tax Compliance (or not) Discussion Thread
Sub-threads (more will be added as they occurs):
Previous Tax thread:
US Expat Tax and FBAR discussion thread, part 1
US Expat Tax and FBAR discussion thread, part 2
Moody’s are in the business of scaring people so that they can earn fees.
there have been zero reports of the IRS going after a small fish living outside of the US. They don’t have the interest or the ability. Agents are being fired, their computers are antiquated. They are being starved of resources in order to defund the government. The IRS is a non issue for you.
The very worst thing you could do is jump into the net.
Fatca is 13 or 14 years old. Even if your bank were to report you as a citizen, nothing would happen. Their computers would not be able to make a connection.
Best advice. Do absolutely nothing. Second best alternative, renounce and then DON’T FILE a thing.
You may wonder if I’m qualified to say these things. I can tell you that my wife was a dual citizen (originally American) She worked hard for years in Canada and built up a retirement account and equity in our house. She was unaware she was supposed to file in the US believing that becoming Canadian she had lost her American citizenship. Back in 2011 when FATCA was first on the scene a lawyer had us explore a voluntary disclosure under the first so called amnesty. An accountant began the process. After sleepless nights for both of us, we decided not to go ahead. Best decision ever. Those who did enter the first “amnesty” were brutalized. A few committed suicide.
Don’t rush, take your time, we are here to help. We should be able to save you a tonne of trouble and a lot of money. There were other Brits on this site who renounced and didn’t file. I can’t remember the names . IBS has been quiet for a number of years. Perhaps Pacifica can recall.
Bird Person is who I had in mind.
BirdPerson says
August 21, 2019 at 11:16 am
@Anonymous
I renounced in September last year. I have never filed a US tax return in my life, and I shan’t be doing so now. However, I have no assets or income in the USA, and I’m a financial minnow.
The Embassy will not ask you any questions about your tax status. As to whether there are any consequences, who knows? Supposedly the IRS will be sending ‘soft’ letters to those who renounced without filing. The question is, how much can they do to someone who has no US income or assets? And would they bother chasing it up?
Someone who helped me think this through was Keith Redmond. You can find him on Facebook in the group American Expatriates.
@pacifica777 – thank you very much for getting back to me and with such helpful pointers. I will look into those resources. Thanks again, I appreciate it.
@Portland – That’s very reassuring and at least the beginnings of a great relief! Thanks for taking the time.
I continue to never have heard anything from the IRS. Renounced September 2018.
Not a peep either, since early 2022. Haven’t made it onto the quarterly list either.