The IRS has announced new procedures that allow certain expatriates who have relinquished their U.S. citizenship to come into compliance with their U.S. tax and filing obligations and receive relief for back taxes. The new procedures can be found on the IRS website. Here are some key takeaways:

Who’s Eligible?

  • Individuals who have failed to file required U.S. returns due to non-willful conduct, and
  • Owe a limited amount of back taxes to the United States, and
  • Have less than $2 million in net assets.

Individuals wishing to utilize these new procedures must file outstanding U.S. returns, including all required schedules and information returns, for the five years preceding and the year of their expatriation. If the taxpayer’s tax liability does not exceed $25,000, the taxpayer is relieved from paying U.S. taxes. No penalties or interest will be assessed as long as all qualifications are met.

Please contact our International Tax team with any further questions.