UK/USA Dual Citizen Question - Taxes

[redgiant]

There is a bill in congress at the moment (submitted in Dec 2018) that may eliminate the reporting requirement for US persons living abroad. It's early days but worth speaking to your US tax advisor about.

H.R.7358 - 115th Congress (2017-2018): Tax Fairness for Americans Abroad Act of 2018 | Congress.gov | Library of Congress
Tax Fairness For Americans Abroad Act of 2018 – A Residency-Based Taxation Bill | Rockville, MD |

[Maslins]

But if you were my UK accountant and I told you I was getting US advice that sounded daft to you, I think I'd want you to say so.

My response was:
"Have to admit, whilst of course I bow to your US accountant when it comes to US tax affairs, what they're suggesting would apply seems ridiculously penal. I would therefore anticipate if it is correct, surely the powers that be would have this kind of situation pointed out to them and tweak before it becomes a reality?!"

I feel this is pretty much saying it sounds daft to me...but at the same time accepting that loads of countries (including the UK) have some daft tax rules. I'd be an arrogant twonk to claim I knew more about US tax law than their US accountant.

[WordIsBond]

My response was:
I feel this is pretty much saying it sounds daft to me...

Yep. The guy should have gone for a second opinion after getting a response like that, if he cared about it. Maybe he didn't care given what you've said about his situation.

[WordIsBond]

It's early days but worth speaking to your US tax advisor about.

Or, if you are a US citizen, your Congressman.

[UKLonghorn]

Many, many thanks for the tips on what to look in and what to search for. I will do some research to get a better idea of the topic and then discuss with my Tax guy.

Being a dual US/UK citizen and living outside the USA does cause issues. But I am not keen on tripping over issues and getting caught up in the bureaucracy.

As a teenager back in Texas, while a bus boy, I made a minor mistake on "tip taxes". Took me a year to sort out with me sending money in and the IRS sending it back while someone else at the IRS kept sending me bills for the original penalty plus interest. Fun.

Will update here in case others stumble on this...Thanks all!