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US Citizen Returning to US

Technical topics regarding tax preparation.
#1
jnchan  
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5
Joined:
10-Apr-2016 10:15am
Location:
Virginia
I have a client who was born in the US, moved to a foreign country at the age of 2 and is now coming back for school. She's been told that she may have to pay taxes on income earned where she's a permanent resident. Is this true?
 

#2
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2227
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21-Apr-2014 10:39am
Location:
Los Angeles, California
US Citizens are taxed on their worldwide income.
 

#3
Nilodop  
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15387
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21-Apr-2014 9:28am
Location:
Pennsylvania
Wouldn't that depend on the laws where she is a permanent resident? Or do you mean U.S. taxes, in which case TaxMonkey has answered you, and one wonders if she has filed U.S. tax returns ever.
 

#4
Guya  
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784
Joined:
21-Apr-2014 8:08am
Location:
London, United Kingdom
Your client is (probably) a US resident and always been. Have you asked if the client's parents were on the blue list? Have you asked if your client has relinquished US citizenship? If not you have not established if she may be delinquent with US tax & information returns.
PS – Greeting from London, England. Grey and rainy ...
 

#5
jnchan  
Posts:
5
Joined:
10-Apr-2016 10:15am
Location:
Virginia
She was born in this country, because her Dad was studying in the US to get his PhD. They moved back to their original country at the age of 4. She's never filed a US tax return...I guess this complicates things since she's coming here to study.
 

#6
Guya  
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784
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Location:
London, United Kingdom
This is a very normal scenario, one that all of us tax practitioners outside of the US hear several dozen times each week from every new client. Your client's first task will be put together a dossier of medical, school & work records since age of 2 to satisfy the SSA. You may already have discussed streamlined procedures, FBARs, PFICs, 8938s and so on with the client.
PS – Greeting from London, England. Grey and rainy ...
 


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