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Expatriated Individuals May Qualify for a Tax Relief Program

 Posted on September 26, 2019 in Taxation Law

San Jose, CA tax law attorney for expatriates

When an individual chooses to move to another country, he or she may relinquish his or her United States citizenship. However, many of these former citizens may not know that they have unfulfilled tax obligations to the United States. Unpaid back taxes can result in additional debt due to accruing interest as well as serious penalties. Fortunately, the Internal Revenue Service (IRS) recently announced the creation of several procedures through which former citizens can be relieved of their U.S. tax responsibilities.

Former Citizens Must Meet Certain Criteria for Tax Relief

If you are an expatriated person who is not currently compliant with U.S. tax laws, you may worry whether or not you can even afford to pay your back taxes. Unfulfilled tax obligations can quickly spiral out of control – especially when a person was not aware that he or she even owed back taxes. In an effort to help former citizens come into compliance with the law, the IRS is allowing qualifying individuals to be relieved of their tax obligations. These individuals must meet certain criteria in order to be eligible for tax relief. The criteria for “Relief Procedures for Certain Former Citizens” include:

  • The person’s past tax compliance failures were not willful.
  • The person must have a net worth less than $2 million.
  • The person must not have filed tax returns as a U.S citizen or resident.
  • The person must have renounced his or her U.S. citizenship after March 18, 2010.
  • The person’s cumulative tax liability for the year he or she renounced U.S. citizenship and the 5 years prior to that is $25,000 or less.
  • The person did not surpass the average annual net income tax threshold set by IRC 877(a)(2)(A) for the 5 tax years prior to expatriation.
  • The person agrees to submit federal tax returns for all 6 tax years in question.

If you are a former citizen who meets these requirements, you will likely be considered a “covered expatriate” and will not be liable for your unpaid taxes or any associated penalties.

Contact a San Jose, CA Tax Law Attorney

Attorney John D. Teter has more than 30 years of experience helping individuals and families become compliant with U.S tax laws. If you are a former citizen who would like to learn more about your options under the Internal Revenue Service’s Relief Procedures for Certain Former Citizens, Mr. Teter can help. At John D. Teter Law Offices, we understand that owing back taxes can be a heavy burden to bear. Get the help you need by calling a San Jose tax compliance lawyer today at 408-866-1810 to schedule a confidential consultation.


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