# Filed 8854 and haven’t heard from IRS



## Kuno1

Hello All,
I’m a Korean national and abandoned my Green Card at the US embassy in Korea a few years ago. I came back to the US two years ago on a visa, found out I haven’t filed 8854, and put together all materials and filed it to IRS in quite a hurry. I have some real estate back in my country which I inherited from my family long time ago, so I wound up owing some exit tax to the US. However I do not have cash at hand (it’s a harsh tax!) and I wanted to consult with IRS in regards to set up an installment plan.

Right after I filed 8854 and all documents, the pandemic began and it became impossible to contact IRS. My accountant was contacted by an IRS agent once but it was about my past tax return - and when my accountant asked about my exit tax payment the officer said someone from the exit tax team would get in touch soon. That never happened and we are still waiting.

As it is impossible nowadays to call IRS and talk to a real person I am totally lost as to what to do now with my unpaid tax. Should I keep waiting? I’d greatly appreciate your insight and idea. Thank you!


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## JustLurking

I don't have any answer to your dilemma (sorry), but I just wanted to commiserate. I feel your pain. The US exit tax is beyond "harsh". It is disgraceful, objectionable, demeaning and degrading.

I left the US because of it, and have not returned since. Not even for a visit.


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## Bevdeforges

I wouldn't hold my breath waiting for someone to get back to me. The IRS is a bit stressed out themselves these days. If and when you hear back, if you have problems you may want to contact the Taxpayer Advocate to help you out. Taxpayer Advocate | Internal Revenue Service

There is some information and FAQ files on that page, but if you find you have difficulty negotiating or paying on a plan, do contact the advocate. They are there to help (unlike many government agencies).


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## Kuno1

JustLurking said:


> I don't have any answer to your dilemma (sorry), but I just wanted to commiserate. I feel your pain. The US exit tax is beyond "harsh". It is disgraceful, objectionable, demeaning and degrading.
> 
> I left the US because of it, and have not returned since. Not even for a visit.


Thank you, at least I am not alone in blaming the total nonsense of the exit tax: my grandfather who left me with the inheritance (some real estate in Korea, lol) has never even been to the US!


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## Kuno1

Bevdeforges said:


> I wouldn't hold my breath waiting for someone to get back to me. The IRS is a bit stressed out themselves these days. If and when you hear back, if you have problems you may want to contact the Taxpayer Advocate to help you out. Taxpayer Advocate | Internal Revenue Service
> 
> There is some information and FAQ files on that page, but if you find you have difficulty negotiating or paying on a plan, do contact the advocate. They are there to help (unlike many government agencies).


Thank you, will definitely check that out!


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## Nononymous

You probably don't need to hear this now, but I'll say it for the benefit of others. If you had simply ignored the filing requirement, or left the real estate off the 8854, nobody at the IRS would know the difference. Their powers are very limited, beyond US borders. 

If you haven't already paid the exit tax, **** 'em, don't bother. If you don't plan on spending time in the US, all good. They can't collect from you if you don't have US assets.


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## Kuno1

Nononymous said:


> You probably don't need to hear this now, but I'll say it for the benefit of others. If you had simply ignored the filing requirement, or left the real estate off the 8854, nobody at the IRS would know the difference. Their powers are very limited, beyond US borders.
> 
> If you haven't already paid the exit tax, **** 'em, don't bother. If you don't plan on spending time in the US, all good. They can't collect from you if you don't have US assets.


Thank you for your comment and I definitely agree with you on that point. I almost regret I listed my asset - I was totally shocked and overwhelmed I could not think straight back then.
The problem is I am back in the US with a visa and am going to live here for a while again (which was totally unexpected.) I’m almost going nuts imagining all the horrible situations that might occur next. Since I found this forum, posted a message and heard from some of you it became much easier to cope. Thanks again.


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## Nononymous

How long are you planning to stay? With luck, they might not get around to sending you a bill before you leave again.

Even then, if you're on a visa and have no US assets, you could stall and eventually just walk away.


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## Kuno1

Nononymous said:


> How long are you planning to stay? With luck, they might not get around to sending you a bill before you leave again.
> 
> Even then, if you're on a visa and have no US assets, you could stall and eventually just walk away.


I’m not sure at this point but hopefully for at least a decade… might be a bad idea though. Obviously there’s no statute of limitation for exit tax. I consult with an accountant but he has little experience in exit tax and is totally out of idea as to what I should do now. I do not have any asset in the US except for one checking account and 401k.


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## Jca1

If you're going to stay in the US and the IRS is going to try to collect, I'd be tempted to pay it off on a zero or low-interest credit card and be done with it, unless we're talking about a very large amount. Generally, the IRS is the worst creditor you could have.


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## Kuno1

Thanks Jca1 - yes I would love to pay it off but it is a very large amount - far more than my credit card limit. In fact it’s more than all of my liquid asset combined (most of which are in Korea.) There’s no way I’d be able to pay it at once and that’s the problem…


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## Nononymous

You've really screwed yourself here, unfortunately. I can't really see how you can realistically stay ten years in the US while having created this large debt for yourself. 

If paying the full amount is not possible, then you could stay until such time as their debt collection efforts became unbearable, at which point you leave. This could be risky or unpleasant because you would very definitely be on the IRS radar. Alternatively, set up a long-term payment plan with the lowest possible payment, then cease paying when you leave the US. This also has you on the IRS radar.

Really there's no good option here. Creating a huge exit tax obligation for yourself then returning to the US seems to me a recipe for expensive disaster. But hindsight is 20-20.


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## Kuno1

Nononymous, thank you for your comment and I totally agree, I screwed up really badly and knowing that I desperately seek for some help here.
As I said in the first post I haven’t heard from IRS since when I submitted 8854 and I tried for dozens of times to reach out to IRS with no luck.


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## Nononymous

Stop trying to contact the IRS. Maybe they lost your file, or it will take years to process the 8854 form. Here's my advice: enjoy life in the US for as long as you can before they send you the bill; move your money outside the US regularly; leave the US if and when they send you a bill.


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## Kuno1

Thank you again Nononymous - I really do appreciate your advice hence no one I met provided any useful info other than people here (my accountant is totally useless and lawyers said pay the tax while charging me $$$$$.)

You’re absolutely right and I believe that’s the best option. However, you might think I am out of my mind but I just do not want to live in the US while being obsessed by fear, and anticipating that I might have to pack up and leave the US tomorrow - that’s not life anymore, and that’s why I want to get things straight and done with it, even if that means I lose a significant amount of money - although I have few assets in the US, just a checking account and a little 401K.
Another reason I want to contact them and be done with this **** asap is I am afraid of the interest. What if they contact me, say, five years from now? The amount I owe will be gigantic and that thought deprives me of sleep quite a lot.

Thanks again, I really cannot appreciate your thoughts and comments. I feel overwhelmed, miserable and depressed and furious at the US tax system for attempting to ruin my life - my asset in Korea has absolutely nothing to do with the US - even a cent of it.


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## Kuno1

Kuno1 said:


> Thank you again Nononymous - I really do appreciate your advice hence no one I met provided any useful info other than people here (my accountant is totally useless and lawyers said pay the tax while charging me $$$$$.)
> 
> You’re absolutely right and I believe that’s the best option. However, you might think I am out of my mind but I just do not want to live in the US while being obsessed by fear, and anticipating that I might have to pack up and leave the US tomorrow - that’s not life anymore, and that’s why I want to get things straight and done with it, even if that means I lose a significant amount of money - although I have few assets in the US, just a checking account and a little 401K.
> Another reason I want to contact them and be done with this **** asap is I am afraid of the interest. What if they contact me, say, five years from now? The amount I owe will be gigantic and that thought deprives me of sleep quite a lot.
> 
> Thanks again, I really cannot appreciate your thoughts and comments. I feel overwhelmed, miserable and depressed and furious at the US tax system for attempting to ruin my life - my asset in Korea has absolutely nothing to do with the US - even a cent of it.


 I meant “I cannot appreciate your thoughts and comments enough.” My apologies


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## Nononymous

No worries. To be honest I'm not sure that fleeing the US when you see a bill is entirely safe, but it's probably what I'd try first rather than pay. Or I'd just leave now and go somewhere else.

But ultimately, to be blunt, you created a situation for yourself where you probably need to pay the US a ton of money (because you chose to declare those Korean assets when you gave up your green card) if you want to stay in the country. 

Also I believe the interest clock would start when they send you a bill. As long as they have a valid contact address, you won't be hit with five years' interest if they don't get around to sending you a bill for five years. Even the IRS isn't that unfair.


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## Kuno1

Thanks Nononymous, I do appreciate your bluntness And wow, that’s the polar opposite from what my lawyer said - according to him the clock has already start ticking - from when I returned my GC. I have hard time trusting him ‘cause it was clear to me on some other tax issues he was fear-mongering.

No crying over spilt tax form, but back then I had no access to any reliable resources. I wasn’t able to find any accountant who has an expertise in this matter AND knowledge in asset evaluation in Korea, and all lawyers I spoke to charged me some ridiculous amount of money to recommend me to file the form and pay the tax immediately. I guess I was awfully unlucky.


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## Nononymous

Kuno1 said:


> Thanks Nononymous, I do appreciate your bluntness And wow, that’s the polar opposite from what my lawyer said - according to him the clock has already start ticking - from when I returned my GC. I have hard time trusting him ‘cause it was clear to me on some other tax issues he was fear-mongering.
> 
> No crying over spilt tax form, but back then I had no access to any reliable resources. I wasn’t able to find any accountant who has an expertise in this matter AND knowledge in asset evaluation in Korea, and all lawyers I spoke to charged me some ridiculous amount of money to recommend me to file the form and pay the tax immediately. I guess I was awfully unlucky.


I wouldn't necessarily trust my opinion on the interest clock. Maybe it started already, for the 8854 situation. In any case it doesn't change your two basic options: pay or leave.


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## 255

Kuno1 -- You might consider an "Offer in Compromise." You'll potentially pay less than owed to settle and you can establish periodic payments if need be: https://www.irs.gov/pub/irs-pdf/f656b.pdf . 

Alternately, you may consider utilizing a "tax professional" to negotiate on your behalf. There are many "tax relief" firms, in the U.S. that specialize in lowering taxes owed. They'll utilize IRS form 656 vice 656-B, that you'd use if you do it yourself: https://www.irs.gov/pub/irs-pdf/f656.pdf . Cheers, 255


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## Kuno1

255, thank you very much for the tips! It’s very helpful. Will definitely consider them.


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