The IRS has released a new amnesty program called the Relief Procedures for Certain Former Citizens’. The program is designed to target and support those who have renounced their citizenship (or, in some cases, those who intend to), and incentives noncompliant taxpayers to voluntarily come forward and get caught up on their taxes without being taxed as a covered expatriate.
The new procedures will help certain former expatriates- primarily those with limited tax debt, who were unaware of their tax filing obligations and have never filed before. These individuals are often known as ‘Accidental Americans’.
Accidental Americans are often people who have lived outside of the US for their whole or majority of their life, how ever for a number of different potential reasons are listed as a US citizen.
The restrictions on those who can benefit from the Relief Procedures for Certain Former Citizens are:
Only applies to those who expatriated after March 18, 2010
Only applies to those who have a net worth of less than $2 million at the time of expatriation and at the time of making their submission
Only applies to those who have an aggregate tax liability of $25,000 or less for the taxable year of expatriation and the five prior years
Only applies to those who have no prior tax-filing history and were non-wilful about failing to meet the existing requirements