The IRS recently announced new tax laws that would provide relief to dual citizens. However, the new laws have both positive and negative aspects.
The new tax laws are for non-residents, including dual citizens who lived outside the United States beginning in 2009. Furthermore, the non-resident must not have filed a United States tax return for at least three years and be considered low risk by the Internal Revenue Service. If you are currently under an IRS investigation or haven’t disclosed all your income in the country where you live, you are generally considered high risk. The benefit of using the new tax laws is a reduction in the possible penalties that you could wind up paying.
Individuals are also unable to amend their returns if they forget to include all of their income. However, the new tax laws do not protect filers against potential criminal prosecution in the event that the IRS believes that the filer is committing tax evasion or another tax crime.
An experienced tax attorney is aware of the intricacies involved with tax returns for dual citizens or non-resident citizens. He or she also keeps abreast of changes in the law, such as the new tax laws that the IRS recently passed. The IRS can take aggressive steps in seeking money that is owed in back taxes, including using remedies such as a wage garnishment or a bank levy. An experienced tax attorney can assist with tax issues that arise during the preparation of tax returns.
Source: Forbes, “Newest Offshore IRS Amnesty Not For Everyone,” Robert W. Wood, Sept. 1, 2012