peterandjanet

Hi, I have been a taxpayer in the UK all my working life and have retired to the USA for family reasons. After 10 years I became a Naturalized Citizen of the USA and so became liable to be taxed in the USA. Can anybody advise me of what to do to avoid being taxed in the UK and the USA?

mikelincs

We ask all new members to have a quick read of the site rules https://britishexpats.com/site-rules/ and should you have any site related problems please contct one of te moderators, names are in bold at the bottom right of each forum page.
as your question is USA specific could you please ask the question in the USA forum as this forum id really only for introductions.

https://britishexpats.com/forum/usa-57/

MidAtlantic

On what basis were you in the USA for the 10 years before naturalization? Your liability for US tax did not start when you became a citizen. It is likely that you should have been completing US tax returns for many years.

peterandjanet

I was a resident alien with a green card. I was paying tax under a reciprocal arrangement and my advice from the IRS booklet which stated that any income I earned in the USA was taxable after reaching the threshold. That never happened.

civilservant

If you are not sure of the steps to take, consult a CPA.

Rete

As a legal permanent resident you were to file a tax return annually and declare any and all worldwide income, not just income earned in the US. You can file back taxes with the IRS. Consult with a tax accountant as to your responsibilities on how to file both this coming year's taxes and back taxes.

PS Income includes all earnings on savings, etc.

Jerseygirl

Welcome to BE.

I have moved your thread over to our US forum, as the Welcome Inn is purely for new members to introduce themselves.

Cook_County

A US resident is required to report worldwide income and gains and file (possibly) various informational returns. If these were omitted or incorrect you may wish to use the IRS SDOP to minimise risk.

lansbury

To answer your question you need to complete this form https://www.gov.uk/government/public...ndividual-2002 and send it to the IRS with form 8802. The full instructions are part of the form linked in this post.

MidAtlantic

That would be to declare to the IRS that he has been living in the US for over 10 years, at which point they will realize that he has never completed a tax form - definitely not advisable in this instance. The OP needs to take professional advice as to how to proceed and minimize the risk involved in his failure to report.

Giantaxe

There's no statute of limitations on taxes due from a failure to file a tax return, so I certainly agree the OP is in need of professional advice as to their liability, if any. With luck, their UK taxes paid may offset any US federal tax liability. Informational returns would still be problematic though, as likely would be state taxes if OP resides in a state with a state income tax.

lansbury

I just answered the question asked. I presumed he would taken on board the advice already given by others, in the thread, to seek professional advice.

Rete

Perhaps he will come back to get the answers.