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IRS offers expatriates opportunity to come into compliance

People choose to revoke their United States citizenship for any number of reasons. Regardless of the reason, it is important to note that expatriates do not automatically rid themselves of their tax obligations. Those with tax debt will still need to pay their bill with the Internal Revenue Service (IRS). However, the IRS recently announced procedures that may help certain individuals come into compliance.

What are the new procedures?

The Relief Procedures for Certain Former Citizens allow qualifying individuals relief from their tax obligations. The IRS has strict criteria to partake within these new relief procedures, examples include:

  • Individual must owe a limited amount of back taxes to the U.S.
  • Individual must own less than $2 million in assets
  • Past compliance issues must be deemed “non-willful”

The IRS states many who qualify for these procedures may not be aware of their tax obligations. They may have lived most of their lives outside of the United States.

How do those who qualify partake in the program?

The IRS requires these individuals file outstanding tax returns for the year of their expatriation as well as the five preceding years. If the tax obligation is under $25,000 for all six years, the IRS will likely relieve the taxpayer of the obligation.

Although no end date is yet set, the IRS has stated the program will likely have a specific termination date. Those who are interested in partaking in the program are wise to seek legal counsel to review their situation to better ensure it is the best compliance option for their case.

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