Technical topics regarding tax preparation.
US Citizen Returning to US
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20-Apr-2016 11:17am

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?

20-Apr-2016 11:28am

US Citizens are taxed on their worldwide income.

20-Apr-2016 11:31am

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.

20-Apr-2016 1:45pm

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.

23-Apr-2016 11:14am

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.

24-Apr-2016 8:00am

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.
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