Our suggestion for a new compliance procedure for non-resident, dual national, delinquent us taxpayers is as follows:
This compliance procedure is only available to US persons who are also nationals of another country and (1) have resided continuously outside the United States for more than ten years as of January 1, 2013 and continue to reside outside the United States; (2) were born in the United States but moved from the United States prior to their 18th birthday and continue to reside outside the United States; or (3) were born outside the United States and continue to reside outside the United States.
Qualifying US persons must complete the attached questionnaire under penalties of perjury and attach it to the tax returns they are required to file in accordance with this compliance procedure.
Qualifying US persons must file three years of US tax returns, beginning with the most recent tax year for which returns are delinquent and must file an FBAR (Form TD F 90-22.1) for the same three year period, unless they have timely filed a tax return for the current tax year for which returns are due, in whch case they must file returns/FBAR’s for the two prior tax years, for a total of three years.
Example 1: If a qualifying US person timely filed a US tax return and FBAR for the 2012 tax year, that person would be required to file tax returns and FBAR’s only for 2010 and 2011.
Example 2: If a qualifying US person had not timely filed a US tax return for 2012, that person would be required to file tax returns and FBAR’s for three years beginning in 2012.
Qualifying US persons may file their tax returns and FBAR’s without a social security number if they do not have one. A unique identifying number will be assigned to them by the Service.
These taxpayers must pay any tax and interest due, but will not be subject to penalties for late filing either of the tax returns or the FBAR’s.
All tax returns filed in accordance with this procedure must have Non-Resident, Dual National Taxpayer written on the top of the return.
All of the required returns must be attached to the completed questionnaire and mailed to:Internal Revenue Service 3651 South I-H 35 Stop 6063 AUSC Attention: Non-Resident, Dual National Procedure Austin, TX 78741