U.S. Tax Obligations

Important U.S. Tax Information

All Americans earning above a threshold amount* are required to file an annual tax return with the IRS – no matter where they live

This obligation is not removed by any Tax Treaty or law

This obligation is not removed by tax credits or because of earning excluded foreign income

Even if you have never been in the U.S. or have lived overseas for 30 years or more, you are required to file an annual tax return with the IRS – It says so on the last page of your U.S. Passport – see clause D

‘Americans’ include U.S. citizens and passports holders, people born in the U.S., and anybody who has a parent who is an American. You must also file with the IRS if you have a green card – even if it has expired (unless the card has been formally revoked) – or spend too much time in the U.S. over a three-year period

The IRS is collecting bank information on all Americans overseas under the FATCA law

You must file even if you have no U.S. tax liability

If you are an American, you may have additional reporting obligations for any non-U.S. businesses you own or manage

If you live overseas you must file your taxes on or before 15 June of the following year
(2020 U.S. tax returns are due on 15 June 2021 and so on)

There are IRS amnesty-like programs that allow you to bring your IRS filings up to date – often with no tax or penalties due

There are special rules for Americans and green card holders who wish to expatriate – or formally revoke their green cards. An expired green card must be formally revoked. In each case your tax affairs must be uptodate to expatriate or revoke.

We specialise filing your U.S. tax returns and can help with estates, pensions, social security, inheritances, and much more

Please contact us today for a free confidential consultation

Please check out the IRS webpage on this here

*Threshold amounts for 2022:

Notes

• There are other circumstances where you must file even if you earn less than above

• The IRS includes (and taxes) income that may not be taxable in your country of residence but some income, such as Irish State pension, is not taxable by the IRS if you are resident in Ireland

• You must file with the IRS if you earn more than $400 in self-employed income

• These rules apply equally to Americans and holders of green cards that have not been formally revoked (the holder of an expired green card is still liable until formally revoked. Please seek advice before revoking a green card as you are still liable to the IRS if you have not settled your tax affairs -and filed Form 8854 – when you revoke. Late filing form 8854 incurs a penalty of $10,000)

• Exclusion from U.S. tax for foreign earnings (Foreign Earned Income Credit) must be claimed on IRS From 2555 with a timely filed taxed return. There are specific procedures to claim this exclusion late. If a tax return is not made to the IRS, then then exclusion is not effective