1969tonka

My wife (usc) and I are just starting the process but I am just trying to anticipate any problems which may arise . She has lived in the UK for over 25 years now (21 years with first husband and the other years with me) but she wants return and I wish to go as well , in all her years here she never filed any tax returns in the USA and we want to know if this is going to be a problem. She has worked here since coming over and had no income stream from the usa at all.I know this is not an immediate issue but I would like time to get it sorted out with plenty of notice. Many thanks in anticipation

ian-mstm

Yes! All US citizens are obligated, by law, to file a US tax return annually if they are above the IRS threshold for filing (see www.irs.gov). The penalty for not filing is a percentage of the tax owed, on top of the amount owed.


The US taxes her citizens on their worldwide income, so it doesn't matter that there was no US income.


At a minimum, she must file the most recent 3 years' worth of returns before you'll be able to get a visa.

Ian

1969tonka

Thanks Ian , been doing a bit more research and it appears she will not have any tax or fines to pay as she has been paying paye over here on her salary and there s a reciprocal agreement with the irs .

Noorah101

Even though she may not owe any US tax or fines, she still needs to file 3 years of tax returns.

Rene

ian-mstm

Yes - the US/UK tax treaty helps her avoid double taxation... but she must still file the returns. If she's earning above the IRS threshold, she doesn't get the choice not to file. Further, while the tax treaty avoids double taxation, I'm not sure it specifically precludes not having any US tax penalties as a result of not filing US tax returns - but I'd be happy to be wrong about that.

Ian

1969tonka

Thank you again Renee and Ian .can I be cheeky and ask another question (I am sure I can see you nodding lol) , should I print the forms straight off the irs website and post to Texas or can you do it online ? Thanks again or your help (can I donate to running your site ?)

ian-mstm

It doesn't really matter. Eventually you're going to have to print them, but whether or not you complete them online is up to you. The forms must be sent in the post to the US.

Keep in mind that there are two things going on here... the IRS obligation to file a tax return, and a USCIS obligation to have them filed. USCIS doesn't care whether or not you've paid any taxes... they're sole requirement is that the returns have been filed. Beyond that simple filing requirement, they don't much care whether you owe anything or not.

Ian