The IRS has announced new tax relief for expatriates who meet certain requirements (IR-2019-151, 9/6/19). This relief only applies to individuals who have not filed federal tax returns as U.S. citizens or residents, owe a limited amount of back taxes and have net assets of less than $2 million. Also, past compliance failures must have been non-willful.
Eligible individuals have to file outstanding U.S. tax returns for their year of expatriation and the five prior years. If total tax liability for the six years does not exceed $25,000, the taxpayer is relieved from paying federal tax. Contact your JMF tax adviser for more details. If you have any questions as an impat or expat, please reach out to our International Practice Group.