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Topic: Stay off radar or file?  (Read 1026 times)

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Stay off radar or file?
« on: November 22, 2017, 11:47:46 AM »
Hello,
I moved to the UK in 2006 and became 'ordinary resident then. I don't forsee myself moving back to the USA anytime soon and am seriously looking at changing my indefinate leave to remain to UK citizenship.

I last filed taxes in 2009 maybe 2010. since then I stopped working, so had no income to report. I have recently started working again this August, but my income is well below any US taxation level.
Do I still need to file? Are there any benefits/ potential penalties to not filing?
(I am married to a UK citizen and we have two children with dual nationality (UK/USA).
Many thanks.


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Re: Stay off radar or file?
« Reply #1 on: November 22, 2017, 08:59:38 PM »
You are losing out on up to $2,000 a year of refunds from the IRS. You will already have been reported on to HMRC by a UK financial institution. Why would you not file at the moment while the IRS are accepting the paperwork penalty free?


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Re: Stay off radar or file?
« Reply #2 on: November 22, 2017, 09:12:28 PM »
What years do I need to file and how do I claim the child allowance? What do you m an now they are accepting penalty free?


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Re: Stay off radar or file?
« Reply #3 on: November 23, 2017, 08:40:17 PM »
I think Guya means that you can file penalty free under streamlined filing compliance procedures. However from what you wrote, you don't seem to be in this situation. This is for people who have not been filing for years that needed to file but were unaware of the obligation. IRS are accepting catch-up returns from this group penalty free.

You filed up until 2009 to 2010 when you had income, stopped filing when you had no income. now you start working august this year 2017. The 2017 tax return would not be due until next year June 2018 (there is an automatic two month filing extension for overseas). so you are not overdue to file yet and can file that normally next year if you meet the filing threshold. so hardly any penalties can come into the equation. filing for child credits would need to be looked into with a tax professional but i believe that you can not use the foreign earned income exclusion but foreign tax credit.

The choice whether to start filing now or not is yours. how much risk your situation exposes you to in future by not filing (for example receiving a future US inheritance.)


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