American living abroad for 20 years. Never filed taxes
Posted by idifacs311@reddit | expats | View on Reddit | 136 comments
Hey everyone,
I’m completely tax compliant in the country that I live in. I don’t make enough money to even owe the US anything, however, I’ve never filed once since I’ve lived here.
I plan on getting updated soon as there are companies that will do it for around $1000.
I mainly plan on doing it because I’d like to start investing and I’m sure I’ll be in loads of trouble if I do without being up to date.
Has anyone else been in a similar situation??
Think-Avocado2499@reddit
A lot of these expat tax companies are not true firms in the traditional sense. They use third-party contractors to prepare the returns and keep a big chunk of the fee for themselves. Meanwhile, many of the accountants doing the actual work have their own firms and would gladly take you on directly. If there’s an accountant you liked in the past, look them up on social media and contact them directly.
tomorrow509@reddit
I have been exactly in your shoes. You need to take action but no need to panic. I will DM you a referral for the company I used. They handled it all and I ended up owing no US taxes or penalties. The key is you have paid taxes where you are resident.
fumi097@reddit
Hi, can you please share the company you used with me? Sent you a DM
thedudescousin@reddit
I would also like the name of the company, I know it's been awhile, but hopefully you are still around.
Main_Disaster@reddit
Hello! Could you also send me the company you used? I've got a more complex situation this year that is making my tax plans go awry!
tomorrow509@reddit
Done. Check your messages.
qjrbdisdhsld@reddit
Hi can you DM me who you used? I am trying these apps/websites but I run into a lot of roadblocks.
tomorrow509@reddit
Done. Check your messages.
didi33talence@reddit
Hello would you please dm me the company you used too? I am based in France and in the same position as the OP
tomorrow509@reddit
Done.
Such-Rope8927@reddit
hi there! almost a year late to this thread but wondered if you could share the company you used? thank you so much! 🤗
tomorrow509@reddit
Done. Check your messages.
KatieSlabie@reddit
Could you also point me in the right direction please? I to am caught up in this now.
tomorrow509@reddit
If you send me a DM, I'll reply with the details. I don't see an option to DM you on your profile.
Former-Ad6898@reddit
Could you share it with me too please? Hope I’m not too late
tomorrow509@reddit
Done. Check your messages.
jngan012@reddit
Hi can you send me your company referral too? Thanks!
tomorrow509@reddit
Done. Check your messages.
-fieu@reddit
Hi can you send me this info too?
tomorrow509@reddit
Done. Check your messages.
Aromatic-Canary-1743@reddit
Hey same thing, can you send me info
tomorrow509@reddit
Done. Check your messages.
heyheyyy123@reddit
can i ask u for the referral? thanks!
tomorrow509@reddit
Done. Check your messages.
sakura_is_awesome@reddit
If possible, may I have the info too please? Thank you so much because I’m here crying for hours thinking the world is ending and I’ll be a criminal since I found out about the taxes (never got any letters from IRS though) and haven’t done anything for maybe a decade…. Unless my dad did it for me, but he’s in heaven so… yeah 😅😭
tomorrow509@reddit
Done. Check your messages.
Accurate-Back-4422@reddit
can you please share the info with me too?
tomorrow509@reddit
Done. Check you messages.
Small-Entertainer300@reddit
Hi can you send me the info too? Ive been in Australia for 20 years and only had taxes taken out last year for the first time from money I received due to my mothers passing. Hopefully youll see this. Thank you.
tomorrow509@reddit
Done. Check you messages.
Crimsonjewel33@reddit
I'm in Australia too, please help 😅
tomorrow509@reddit
Done. Check your Dm's.
Classic_Work_4202@reddit
Can you please send me the link too?
tomorrow509@reddit
Done. Check your DM's.
Mobile-Clock6257@reddit
Can you please send me the link too. Thank you.
tomorrow509@reddit
done.
PuzzleheadedNews8767@reddit
Can I have as well? Thank you!!
tomorrow509@reddit
Sorry for the delayed reply. Do you still need this?
Baron__007@reddit
Me three and thank you. 🙏
tomorrow509@reddit
Done. Check your DMs.
Other Redditor's take note. If you want my story and recommendation, best to DM me. I don't always pick up comments in threads in a timely manner.
Crypto_Aubergine@reddit
Please DM me as well
tomorrow509@reddit
Done.
Desperate_Struggle21@reddit
Could you please send these details to me too?
tomorrow509@reddit
Done. Check your Dm's.
Dazzling-Driver6072@reddit
Could you please Dm me as well? I am in a similar situation.
ReceptionDependent64@reddit
Replying here because I'm currently blocked from the usexpattaxes sub.
Unless you are planning on moving to the US in the near future, do not enter the US tax system. There is nothing to be gained, and no risk to ignoring your obligations.
A few years ago you would have received $3,200 in pandemic stimulus benefits, but it's too late to apply for that now.
It's very important that you do not disclose your US citizenship to any banks, as that will subject you to FATCA reporting and possible restrictions on your ability to invest. If you were born in the US then it may be impossible to keep your citizenship secret. The only way to prevent this is to renounce US citizenship, which current costs $2,350; contrary to popular belief you are not required to be in tax compliance when you renounce.
tomorrow509@reddit
Done. Important stuff but nothing to lose sleep over.
Pure_Dig5185@reddit
Can you please forward the company info to me? Thank you
tomorrow509@reddit
Done. Check your DMs.
Capable-Custard-8434@reddit
Hey, I am also in the same situation. Would appreciate it if you can send the same details to me as well.
Newnew500@reddit
@capable-custard-8434 have similar questions have sent DM.
tomorrow509@reddit
Done. Check your DMs.
Dry_Needleworker_754@reddit
please DM me :)
buttersbottombetch@reddit
Can you please forward the company to me too 🙏
tomorrow509@reddit
Done. Check your messages.
Ready_Effective3651@reddit
Can you send to me please?
tomorrow509@reddit
Done - a while back. Sorry for the late reply to this comment.
OrangeLeaf999@reddit
Can you send this to me too please?
tomorrow509@reddit
Done.
Glum_Stuff_4942@reddit
Would also like to know
tomorrow509@reddit
Done, Check your DMs.
runcyclexcski@reddit
Dear Tomorrow509, could I have the reference, too, please?
tomorrow509@reddit
Certainly. Check your messages.
MoonRyder00@reddit
Hi, tomorrow509, can you also send me the company name or link ?
tomorrow509@reddit
Done, Check your DMs.
For others that are interested, best to DM me directly as I don't always see these thread messages in a timely manner. Along with a short story on my situation, I provide a referral link that offers a small discount on services if you decide to go with the company I use and recommend.
Expensive-Win-1586@reddit
I would also like to know
PackNegative@reddit
Hey could you send me the company also?
PuzzleheadedNews8767@reddit
Hi! Can you send to me as well? Thank you!
CompetitiveUse2442@reddit
Oh my! There's a lot of us asking for the company you used 🫣 Low income Accidental American here. Should you have a few seconds to forward it to me as well 🙏. It's in the context of a "relief procedure for certain former citizens" but I'm under the impression many firms propose both.
tomorrow509@reddit
Will forward my experience and source details on my resolution tomorrow.
CompetitiveUse2442@reddit
Grazie 🙏
tomorrow509@reddit
Prego. Done. Check your DMs.
sq018@reddit
i need it too
tomorrow509@reddit
Done. Check you DMs.
Chemicalsky247@reddit
Can you also forward it to me please? Thank you! 🙏
Positive_Bee_189@reddit
Hi can you send me the info as well?
tomorrow509@reddit
Done.
_PizzaFriday_@reddit
I'm in the same boat, and would love a recommendation please :)
tomorrow509@reddit
Done.
Riksunraksu@reddit
Can you please please please DM me as well? I just found out two weeks ago that I should have filed my taxes as a US citizen (I have dual citizenship and have never lived in US)
tomorrow509@reddit
Done.
Riksunraksu@reddit
Thank you. May both sides of your pillow always be nice and cool ❤️
redditpost94@reddit
Hey, could you send it to me too please? I’m in the same situation. Thanks!
psychonaut840@reddit
Can you please share with me too? I'm in a similar situation.
TechnicalMatch445@reddit
Would you please forward me the company too? Thanks :)
tomorrow509@reddit
Done.
No_Suspect_3462@reddit
HI - very late to the game here but can you please also send this to me?
tomorrow509@reddit
Sent you a referral and comments on my experience. Check your DMs.
Intelligent_Band_147@reddit
another US expat asking for a referral to have help with taxes...
Practical-Finish-878@reddit
Would also love to know who you used!
tomorrow509@reddit
Sorry for the late reply. Check your DM's for my story and a referral for a discount.
ThatHabsburgMapGuy@reddit
Hi, if anyone is in this situation, don't worry too much. Just file your taxes for this past year (there are several free and easy online services listed on the IRS website.
Don't pay for a service, it's easy to do yourself if you have a spare hour.
qjrbdisdhsld@reddit
Don't pay for a service* can you help me out, I checked the IRS webpage and couldn't find any help for expats
ThatHabsburgMapGuy@reddit
https://www.irs.gov/e-file-do-your-taxes-for-free
qjrbdisdhsld@reddit
Unfortunately I cannot use any of them because I need a US phone number to register 😞
Riksunraksu@reddit
Is it easy even if you live abroad and never have lived in the US? I was born and have always lived outside the US and now I have had 2 weeks of on off panic attacks because I don’t know what to do, how to do it, and how fucked I am for having worked 7-10 years with full income abroad.
(I don’t make that much money tho)
ThatHabsburgMapGuy@reddit
My advice is sort of specific for low earners, but yeah I really wouldn't worry about it.
Riksunraksu@reddit
I might be a nurse but I make less than 40k a year lol
foggysail@reddit
40K/year??? My wife's niece has her own nursing company and I believe her nurses are paid in the $100/hour range.
Riksunraksu@reddit
Different country and system. Ours is not for-profit but universal
mach4UK@reddit
Wow - impressed they haven’t already found you. I didn’t know I even needed to file while living abroad. It took them 4 years and even though I didn’t owe anything they sent me a fine for not filing.
Fit-Avocado-6002@reddit
Out of curiosity, how much did they fine you?
mach4UK@reddit
This was a long time ago but the figure of $480 USD sticks in my mind
chamomileyes@reddit
I wasn't sent a fine but a warning I needed to file about 10 years ago. Now I don't want to freaking file anymore lmao. It's such an unjust and absurd law. I don't really ever plan on moving back to the US, but I'd like to keep the option open. I'm honestly trying to figure out now if I can just stop filing and deal with any consequences of that in the very unlikely scenario I ever move back. The work and stress of filing every year is not worth it.
ProfileBest2034@reddit
When you did finally file, did you just file moving forward or did you do the whole thing with 3 years and FBARs and all that?
chamomileyes@reddit
Luckily enough I was too poor to have to file for the years I didn’t anyway. I think the filing requirement is somewhere around 10K USD of income. So I just filed going forward and thankfully the IRS has never contacted me (may they never).
mach4UK@reddit
Very true. George Bush has a lot to answer for (his law). If you make under a certain amount it should even out though depending on which country you are in and you shouldn’t have to pay much if anything at all - but if you have skipped for a bit am not sure if there are penalties. You’re right though -It shouldn’t be a thing in the first place.
Riksunraksu@reddit
Late to the convo: I was born and have lived abroad my entire life. Dual citizenship. I have only recently discovered the information that taxation is based on citizenship, not where I live. I have never been approached by IRS.
The reason I discovered it is because Finnish banks have signed with some agreement to inform US/IRS of any bank customers who are US citizens. My own dad (American) never told me or maybe he didn’t know.
Now I don’t know how to even start solving this issue. I’ve been in work life 7-10 years and I am deadly afraid I will owe money to IRS that I don’t have nor will I ever be able to pay.
hughcruik@reddit
That’s absolutely not true. If you are a resident of Finland, which has a double-taxation treaty with the US, you pay taxes on your worldwide income in Finland. You have no obligation to inform the IRS of anything except any bank accounts totaling over 10k dollars.
American expat living in France. I pay all taxes in France, not the US.
Riksunraksu@reddit
Yes but the problem is I hadn’t been made aware I have the obligation to declare my income and do my taxes for IRS anyway which means I might be fined for not doing it. That’s the problem
hughcruik@reddit
One more time...if you file your taxes in Finland you have no obligation to file or declare anything in the US. The only thing the IRS is interested in is if you have an overseas bank account of over 10K dollars. It's the FATCA mandate and has nothing at all to do with filing income taxes.
Errant_Knight69@reddit
I’ve come on here for a similar situation. One thing I have worked out is there is a clause which allows you to file for the first time and use negligence/ ignorance as an excuse. Unlikely you will owe tax, but once you start filing taxes you have to keep filing.
ProfileBest2034@reddit
OP -- any updates?
Several_Emotion_4717@reddit
Most comments here have already cleared this in different perspectives.
But here's a small suggestion to help you more, instead of depending fully on an accountant, it's helpful if you keep your own track of tax and finance involved in more than 1 country.
Either you can use different platforms for each country(that's what I do), or also use something like settel .io to tax track multiple countries at once.
Taxhelpforyou@reddit
Hi. The answer is if you are a U.S. citizen you have to file at least federal taxes. In some situations you may have to file state taxes as well. You will file those respective annual returns to determine if you owe any taxes to the federal or state until you renounce your citizenship. The best thing if you plan on remaining a U.S. citizen is to hire a qualified person such as a tax accountant or tax attorney to prepare your returns. Unfortunately to be compliant in your situation it may cost a little bit but it is definitely worth it as a tax accountant or lawyer can advise you of voluntarily disclosure programs and streamline programs that will save you penalties for non filing. In addition, there may be other informational forms that you are required to file that can become very complex. If you would like to discuss further, please let me know as I can provide assistance.
CrazyStar4993@reddit
Are you saying that even if your income of ZERO and you don't need an FBAR you still have to file taxes in the US? Why?
Taxhelpforyou@reddit
Yes. Just because you have 0 taxable income or no tax due doesn’t relieve you of a U.S. filing requirement. Remember filing requirements are based on gross income not net or taxable income.
sndgrss@reddit
Probably not worth fessing up. Do you have another passport?
Riksunraksu@reddit
Doesn’t matter if you have another passport or citizenship apparently.
idifacs311@reddit (OP)
Not yet. Permanent residency. Hopefully citizenship this year
Quirky-Camera5124@reddit
if the irs does not know you exist, just keep it that way.. you will just get in a big bureaucratic mess.
GeneralRaspberry8102@reddit
lol not how it works.
Quirky-Camera5124@reddit
so how do you think it works?
gadgetvirtuoso@reddit
That’s not how it works. 😂🤣
Most likely you’ve not made enough to get the IRS’s attention and/or not made enough to need to file. You don’t have to file if you absolutely, positively know you don’t owe anything or you’re owed a refund. They will happily keep your money and not say a thing.
Many expats down owe anything because of the exclusion and/or tax treaties. You should absolutely talk to a tax professional to get it sorted out though to be sure.
idifacs311@reddit (OP)
Yeah, I’m just worried about popping up on radars by joining any investing accounts
ledledripstick@reddit
My question is what is a reasonable rate to pay for tax help if you owe no taxes due to being a poor expat?
Sisyphuss5MinBreak@reddit
What you're going to need to file is the Streamlined Procedure. I know MyExpatTaxes offers a service that does that for you. I'm sure other companies do as well.
Overall, I think your situation is pretty common. If the IRS hasn't investigated you at this point, they likely won't make a fuss about not paying for so long.
But, if you use the Streamlined Procedure, that means that you can't avoid doing your taxes in the future. As part of it, you state that you didn't realize you needed to pay taxes while living abroad. Once you use it, then you admit that you know you need to file them.
psicopbester@reddit
I really like your name.
Sisyphuss5MinBreak@reddit
Thanks!
zenerose@reddit
I used (and still use) MyExpatTaxes. I moved overseas when I was a kid in 2000 and didn't file until 2021. The first time did, I was required to back file 3 years worth of data. It was a fairly long and confusing process but MET were really helpful and overall I recommend them! But yeah, no getting around filing anymore haha
perthed@reddit
I didn't file for years, BC I was told I didn't have to.
then rules changed, apparently, but I didn't know until a few years ago.
I started filling again, no penalties, haven't owed anything, and was even given stimulus money...even though I don't live in America and I was backfiling. Weird stuff, but I didn't complain.
Traveldopamine@reddit
You're probably considered a higher person of interest if tax activity resumes, but there are many folks with that label.
nyahplay@reddit
I wouldn't worry much about not filing taxes in the US, personally... you aren't legally required to file, even if you live in the US, if you have less than $14k in taxable income (with some exclusions). I filed even in years when I had no income, but that was because I needed proof of low income to stay on IBR for my student loans.
What you need to worry about is the FBAR. If you've had more than the equivalent of $10k in any foreign account you have to report ALL foreign accounts to the IRS so that they know you aren't dodging taxes with an overseas bank account. Most tax companies consider FBAR filing a completely separate service, so make sure to ask about this before you sign on the dotted line.
kitanokikori@reddit
Why start now
NordicJesus@reddit
/r/USExpatTaxes - for example:
https://www.reddit.com/r/USExpatTaxes/s/Okr8DeJHSl
I recommend googling for the term “accidental American.”
Anonymo123@reddit
Quick AI check it looks like there is a min of about $13-15k and under you don't have to report. Over that it sounds like you do.. but there are a lot of caveats\exclusions\credits. I could post the whole AI response if you'd like.. didnt want to dump that otherwise.