I have a US citizen client that has lived in France full time for 7 years. Under the new Foreign tax return rules: Does she really have to file US tax return on income she has earned in France? What if she never moves back to the US? What are the consequences if she does not file a US tax return? She does file and pay France taxes.
USA US citizen living in France
- Thread starter Dee
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I think she have to follow all things related to tax according to France rules and regulations or act.
Hi Dee
Yes, US citizens have to file a US tax return even if outside of the US. Also, it is likely your friend has money in a financial institution in France. If so, she has to file an FBAR ( a report on money held out of the US). Good news is there are exclusions of some of that income and also tax credits for taxes paid to France. What your friend needs though is a tax pro familiar with all of this. But she MUST file the return and the FBAR.
Yes, US citizens have to file a US tax return even if outside of the US. Also, it is likely your friend has money in a financial institution in France. If so, she has to file an FBAR ( a report on money held out of the US). Good news is there are exclusions of some of that income and also tax credits for taxes paid to France. What your friend needs though is a tax pro familiar with all of this. But she MUST file the return and the FBAR.
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Americans overseas now have only the seven choices listed below. I help several non-filers here in Europe every week. Indeed out of the 7 million Americans overseas (National Taxpayer Advocate Service, 2009 Annual Report to Congress, p.165) the number that file US income tax returns is just 858,760 (National Taxpayer Advocate Service, 2011 Annual Report to Congress, p. 155) with just 534,043 FBARs filed in 2009 (Treasury Inspector General for Tax Administration, Report September 2010). I meet and help several each week who have never filed or have simply found American tax returns too complicated and have given up.
Americans overseas now have just the following seven choices.
1. Do nothing
2. File prospectively
3. File quietly
4. File with reasonable cause arguments
5. Traditional voluntary disclosure
6. Offshore Voluntary Disclosure Program
7. Streamlined overseas American Program
Which one to choose needs specialist advice depending on facts and circumstances. Delighted to advise further with more facts.
Americans overseas now have just the following seven choices.
1. Do nothing
2. File prospectively
3. File quietly
4. File with reasonable cause arguments
5. Traditional voluntary disclosure
6. Offshore Voluntary Disclosure Program
7. Streamlined overseas American Program
Which one to choose needs specialist advice depending on facts and circumstances. Delighted to advise further with more facts.