U.S. Citizens Living Abroad May Face Serious IRS Problems

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JG Tax Group discusses the importance of knowing your rights as a U.S. citizen living abroad.

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Mr. Jeffrey Galante of JG Tax Group has 31 years of senior management experience with the IRS. He has represented clients worldwide who have lived abroad for several years without filing U.S.taxes because they didn’t know that it was a requirement

The news that Facebook co-founder Eduardo Saverin relinquished his U.S. citizenship has sparked both criticism and applause nationwide. While his motives may have been tax related, it is important to understand the reasons behind them. Many U.S. taxpayers are unaware of the laws as they relate to the IRS and U.S. citizenship.

Most U.S. citizens living overseas do not realize that although they are living abroad, they are still required to file U.S. tax returns due to the fact that they are citizens of the United States. One way to avoid filing a U.S. tax return is to relinquish your United States citizenship.

Mr. Jeffrey Galante of JG Tax Group has 31 years of senior management experience with the IRS. He has represented clients worldwide who have lived abroad for several years without filing U.S.taxes because they didn’t know that it was a requirement. Oftentimes these clients visit the local U.S. Embassy and are denied the ability to obtain a visa for their new wife or children upon finding out that they are not in compliance with the IRS and must file their past U.S. tax returns in order to obtain a visa for their new family members.

In one case, Mr. Galante represented a United States citizen who was living in New Zealand for 15 years and was making a significant amount of money at a lower tax bracket. When he attempted to obtain a travel visa for his new wife to enter the United States, he was notified by the U.S. Embassy that he had to file 7 years’ worth of U.S. tax returns before he could do so. After preparing the tax returns, the overall amount owed was a whopping $650,000 plus penalties and interests. This client had neither worked in nor traveled to the United States in 15 years.

According to Mr. Galante, if a citizen is not making money within the United States and is living abroad and relinquishes their citizenship they usually do not have to file U.S. tax returns or pay U.S. taxes. If you are living abroad and find yourself in trouble with the IRS, do not hesitate to call the professionals at JG Tax Group. Our staff has over 120 years of combined IRS experience and can alleviate any IRS problems you may be experiencing.

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