Dual Citizen Tax Relief From IRS

The IRS has taken considerable flak from U.S. citizens living abroad. See Living Abroad Sounds Idyllic?Until You Consider Taxes. Most weren't intentionally hiding money, but many didn't file FBARs??and may not have reported their worldwide income on their U.S. tax returns. This is especially true if they were paying tax elsewhere. Such persons have generally ...

FBARs??are those ever-present disclosure forms for foreign bank and financial accounts. You must file one?a Treasury Form TDF 90-22.1, also known as an FBAR? if the combined balance of your foreign accounts (any time during the year) is more than $10,000. Separate from tax returns, the annual filing is due June 30 for the preceing ...

The trap for the unwary has been that US law requires disclosure by individuals who do not live in the US and have not even visited the US as long as the person has a US passport or birth certificate, even if they are a dual citizen of another country. Interestingly, in many cases, the only US city visited by some dual citizens is Las Vegas. The only problem is that when it comes to the IRS, what happens in Vegas does not stay in Vegas: it may end up on a tax return.

The Internal Revenue Service today issued new rules granting a penalty break to some U.S. expats and dual citizens who have been unfairly caught up in the harsh U.S. crackdown on secret foreign bank accounts and offshore tax evasion. The relief will help middle class folks who have been living for years in high tax ...

With so many changes looming for 2013, it's easy to forget that there were some significant tweaks to the Tax Code for 2012. Here's a list of eleven changes to keep in mind before you file your 2012 tax return, due April 15, 2013: Payroll tax credit will still affect self-employed taxpayers. The expiration of the payroll tax credit for 2013 was big news - but don’t forget that the credit was still in place for 2012.

No U.S. person living abroad or U.S. person with foreign accounts or assets likes FATCA, the massive disclosure law enacted in 2010. See Oh Canada! Hating FBARs And FATCA. No foreign bank or financial institution does either. Some fee-based advisers may stand to make a pretty penny off the reams of disclosures and paperwork FATCA ...

We are well aware of the infamous French dramatics as the wealthy flee the country over the changing tax structure but few know that Americans renouncing citizenship has tripled in the last few years. As The Telegraph reports, many decide to give up citizenship after tiring of the lengthy US tax return process.

(Image credit: AFP via @daylife) Earlier this summer, the IRS Announced Tax Relief For Dual Citizens And US Citizens Abroad. The IRS announced it would unfurl details by September 1, 2012. Late on August 31st, the IRS made good with Instructions for New Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. [...]