Does my daughter need to file US tax forms?

This last post starts off incorrectly by including the following common misunderstanding of US law by suggesting that "your daughter would definitely need to file US taxes".

The daughter only needs to file US tax returns and/or FBARs for those years when her income or bank and financial accounts were above the relevant filing thresholds (both of which are currently $10,000).

The IRS streamlined program is optional and is not always the optimum method of delivering paperwork to the IRS and US Treasury.

The daughter will find excellent free information on the IRS London Embassy website here http://london.usembassy.gov/irs/

There was absolutely nothing incorrect about my last statement.

There are of course filing thresholds (which were already mentioned earlier in the thread), but from the information shown thus far, one would assume that the daughter is making above that (or else there would not be a discussion of getting back on track). My advice is tailored to that individual.

I am simply pointing out one of the most common (and straightforward) way in which people are currently getting on track.

Interestingly - and according to US government statistics - the most common method today is still doing nothing; which is probably not suitable for these circumstances.

In the case of the daughter, she should start by reading and learning what the IRS say as this is largely sensible.  Once she taken a few weeks learning what is required, she may then wish to attempt to comply. The IRS streamlined offer is however only one of seven possible options available which is why it is always prudent to prepare forms first to assess risk before deciding how to deliver any paperwork to the IRS and FinCEN.

I am indebted to all of you for taking the time to reply with lots of good comments, information and arguments. What a mine field! I guess if you grow up in the system it seems the norm, but to an outsider it seems like the most complicated tax system in the world! Unfortunately for many, myself included, one doesn't pay sufficient attention to boring tax laws when falling in love with a foreigner!! Adopting a baby in the US and subsequently deciding to return to England, I never gave it one minutes thought that she would one day be subject to her country of births tax laws. Who knew!
It is, ultimately her decision and you're right, a very personnal one as to whether or not she thinks she may one day want to return to her country of birth. For the last 4 years she has probably made between £18000 and £20000 a year before UK tax, so I think that, according to information given here, will mean that she needs to file forms.
As far as the SSN goes, can someone just clarify that again for me. She was born in April 1988. I have no recollection of ever applying for a SSN, but like I said she was adopted, so someone else may have done it? Am I right in thinking that she quite possibly and legitimately may not have one due to when she was born? If she doesn't have a SSN, how can the US government track her and how does she even file tax forms without one?

Please don't take this the wrong way, but I have to say that I'm eternally grateful that she doesn't have to register for the Draft!

Once again, many thanks.

Full details of how she finds out about or applies for her SSN for free are here (scroll down and ignore the top of the webpage to get the relevant part):http://london.usembassy.gov/cons_new/faqs/faq_fbu_ssn.html

Guya, you mention the streamline offer is one of seven possible options...what are the other options? Thanks in advance!

I don't know about 1988, but when my daughter was born in 1990, requesting a SSN was part of the paperwork we filed concerning her birth.  We did it in the hospital, before we went home with her.  However, I don't know how it would work for a child adopted at birth.

Guya, you mention the streamline offer is one of seven possible options...what are the other options? Thanks in advance!

I would never attempt to answer for guya, but I would suggest that his answer may be similar to this:

• do nothing at all and hope [they are] never found....;
 • file from now on and hope that the IRS, US Treasury and Department of Justice do not ask about the past;
 • file the past returns and FBARs “quietly” by mail with the IRS without otherwise alerting the IRS;
 • file the past returns and FBARs with the IRS and include a written explanation of reasonable cause for not filing earlier;
 • file under traditional “voluntary disclosure” and negotiate directly with the IRS;
 • file under the offshore voluntary disclosure programme (OVDP) and pay a substantial penalty based on the maximum value of financial accounts (typically 27.5% of the maximum value of financial accounts in any of the previous eight years); or
 • file under the new “streamlined approach” for the overseas American,......

Each of these options carries different levels of risk or penalties.