U.S. persons residing abroad have special tax considerations both at home and abroad. The complexity and constant change in tax laws and regulations demand a higher level of knowledge and service. It is important to work with a Certified Public Accountant knowledgeable of the unique reporting requirements facing U.S. citizens residing abroad. The penalties are too significant to risk.
U.S. citizens and U.S. residents not compliant with their U.S. tax filings may qualify to file delinquent returns under the Streamlined Filing Compliance Procedures.
The Offshore Voluntary Disclosure Program (OVDP) is a voluntary disclosure program specifically designed for taxpayers with exposure to potential criminal liability and/or substantial civil penalties due to a willful failure to report foreign financial assets and pay all tax due in respect of those assets.
Relinquishing citizenship is a decision that should not be taken lightly. The first step of renouncing one's U.S. citizenship is to make sure you are compliant with your previous five year's of tax filings. Renouncing without first becoming compliant with the U.S. tax requirements, can be costly. Before formally renouncing your citizenship, consult a U.S. CPA to make sure your U.S. tax obligations are in order.