US citizens living abroad have a US tax obligation
All US citizens have a TAX and Foreign Bank Account Reporting (FBAR) obligation, wherever they live or work in the world. This is governed by the American law FATCA and enforced by intergovernmental agreements between many countries and the US. The tax in the country of residence can be offset against the taxes owed in the US. This means that you almost always have to file taxes but don’t necessarily owe any tax.
Currently, the IRS has an amnesty program (Streamlined Procedure), which allows Americans abroad to file without the risk of penalties. It might be good to know that in case the IRS comes knocking at your door rather than the other way around, the Streamlined Procedure is no longer applicable.
Sept. 6 2019, IRS announces amnesty procedure for certain persons who have relinquished, or intend to relinquish:
Relief Procedures for Certain Former Citizens.
Return without penalty, relinquish citizenship, Social Security Number / TIN not required, exempt from paying tax (if under $ 25,000).
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