Tax-Expatriation

Part I: How the IRS “Non-Filer Program” Affects USCs and LPRs Residing Outside the U.S.

Posted on November 21, 2014

U.S. citizens who have spent most all of their lives outside the U.S. are often times shocked to learn about the scope of the U.S. citizenship based taxation system.  In recent years, due to the aggressive pursuit of the IRS and Tax Division of the Department of Justice, there has become a keen focus on assets and accounts located outside the U.S.

Most recently in August of this year, the IRS has articulated its position for U.S. citizens and lawful permanent residents residing outside the U.S. in a document titled – “New Filing Compliance Procedures for Non-Resident U.S. Taxpayers”

For a brief chronology of the actions taken by the IRS and DOJ and the U.S. Congress in the offshore world during the last few years see, How Congressional Hearings (Particularly In the Senate) Drive IRS and Justice Department Behavior

See, also IRS Audit Techniques – Expatriation, How the IRS Can file a “Substitute Return” for those USCs and LPRs Residing Overseas

The IRS has had for years a specific program for “non-filers”; i.e., those persons who do not file U.S. income tax returns.  See, How the IRS Can file a “Substitute Return” for those USCs and LPRs Residing Overseas

The program is detailed in the Internal Revenue Manual, set out below.  A follow-up post will discuss some uniquely complex issues affecting U.S. citizens and lawful permanent residents who reside outside the U.S.