Terry Hoban and Noelle Abella discuss the IRS’ new Relief Procedures for Certain Former Citizens, and why now may be the most opportune time to consider expatriating from the US.
This time last year the United States (US) Internal Revenue Service (IRS) closed the door to one of its long-running voluntary disclosure programs, wiping away one option for delinquent US taxpayers to come back into compliance.
But as the saying goes, ‘when one door closes, another one opens’.
The IRS announced new Relief Procedures on 6 September 2019 to support former US citizens to come back into compliance with their US tax filing obligations and avoid any potential ‘exit tax’.
The Procedures allow a taxpayer to come back into US tax compliance without actually having to pay any tax owed, provided they meet the following criteria:
The IRS is also allowing individuals to file tax returns under the Relief Procedures without needing to obtain a social security number – a lengthy and administratively burdensome process for citizens living outside of the US.
To continue reading more about the the new relief procedures, please log on to KPMG Tax Now.
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