Originally Posted by Hayley

Huh?? so my son who's dual if he decides he doesn't want the US citizenship he can't ever come back to the US again??

Originally Posted by nun

I think at age 18 you are suppose to make a choice and there is no penalty in such a case.

Originally Posted by JAJ

The idea that a dual US/British citizen has to make a "choice" is an urban myth. No such requirement under US law. Nor under British law.

Originally Posted by nun

Maybe this misconception comes from when you fill out the application for passports etc. Also, I wonder what percentage of dual citizens actually comply with the tax filing regulations.

Originally Posted by Bob

Reading at another forum, it would seem that most of the septics haven't been filing in the UK to the IRS...and it seems many haven't had an issue with it, though I'd hardly recommend doing the same..

Originally Posted by nun

I you are a US expat and don't file taxes I'd hate to deal with the issues this would
cause if you ever returned to the US and started to file again

Originally Posted by JAJ

The idea that a dual US/British citizen has to make a "choice" is an urban myth. No such requirement under US law. Nor under British law.

Originally Posted by gardnma

...
I had heard that things changed a few years ago in this respect, no?

Originally Posted by Bob

no.

Originally Posted by gardnma

Care to expand?

Originally Posted by Bob

I think it changed in the 1940's or there abouts....so a few years either way

Originally Posted by nun

If the total of your overseas accounts is over $10k at any time during the year
you have to declare them all to the Treasury on a TDF 90-22.1

http://www.irs.gov/pub/irs-pdf/f90221.pdf

Penalty for not doing so can be up to $500k or half the value of the accounts! which ever is the greater.

Accounts means everything, banks, investment accounts, pensions, national savings etc.

So becoming a US citizen has serious taxation and financial reporting implications if you ever plan to return to the UK.

If to go to the UK and convince the UK that you are domiciled in the US there are some tax advantages. Still, unless you have family, retirement accounts, investments or SS payments in the US I'd think twice about US citizenship.

Originally Posted by Lynne

If you have accounts overseas and fill in the form for the IRS are you then required to pay tax on that money overseas or it is just to notify them that you have cash stashed away?? It would seem unfair to be taxed here as well as in the UK.

Originally Posted by Bob

There's a tax agreement with the UK...if your income is less than $80K in the UK, you don't pay tax to the IRS....either way, you won't be double taxed...

Originally Posted by Maz

Income or savings?... Do you mean bank interest on a savings account? That's an awful lot of interest.