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June 4, 2019
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A friend living in Spain needs to file. He has never filed. What is your best program for him?

  • June 4, 2019
  • 1 reply
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He was unaware he needed to file US taxes. He has lived, studied and worked in Spain for the past 35 years. He was born in the US.

    Best answer by KarenJ2

    If your friend has never filed his/her US tax returns, there is an IRS program Streamlined Foreign Offshore Procedures that he/she should review.  Your friend should be ok if they file the last 3 years of US tax returns and last 6 years of FinCEN Form 114 as it was non-willful conduct as he was unaware of his filing requirement.  He/She needs to definitely work with the IRS to become current with his/her filing requirement to file a US return annually.  There is a foreign earned income exclusion ($105,900 in 2019) and foreign tax credits that the IRS allows in order to offset double taxation.  

    He/She should consider speaking to a tax lawyer familiar with this tax situation.  Please see the following links.

    https://www.efile.com/american-citizens-abroad-overseas-offshore-assets-late-u-s-tax-returns/ 

    https://www.irs.gov/individuals/international-taxpayers/u-s-taxpayers-residing-outside-the-united-st...

     

    [Edited 03.24.20 | 2:43 pm]

     

    1 reply

    KarenJ2Answer
    June 4, 2019

    If your friend has never filed his/her US tax returns, there is an IRS program Streamlined Foreign Offshore Procedures that he/she should review.  Your friend should be ok if they file the last 3 years of US tax returns and last 6 years of FinCEN Form 114 as it was non-willful conduct as he was unaware of his filing requirement.  He/She needs to definitely work with the IRS to become current with his/her filing requirement to file a US return annually.  There is a foreign earned income exclusion ($105,900 in 2019) and foreign tax credits that the IRS allows in order to offset double taxation.  

    He/She should consider speaking to a tax lawyer familiar with this tax situation.  Please see the following links.

    https://www.efile.com/american-citizens-abroad-overseas-offshore-assets-late-u-s-tax-returns/ 

    https://www.irs.gov/individuals/international-taxpayers/u-s-taxpayers-residing-outside-the-united-st...

     

    [Edited 03.24.20 | 2:43 pm]

     

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