# Streamlined or Reasonable Cause?



## expat2684 (Feb 2, 2019)

Hi, I’ve been living in Ireland since childhood. Both of my parents are deceased, I have been orphaned since 15. I never knew anything about US tax filing until a couple of years ago when the clerk at the US Embassy advised that I should look into tax filing. Of course, this shocked me! I never worked a day of my life in the US! I looked it up on the internet and could not figure out if the rules applied to me at the time. I did write an email to the IRS to explain my circumstances (as the embassy would provide no further info to me) and I did not receive a reply. Hence, I decided that it mustn’t be a requirement in my situation.

At the time, my life was very different. I was just wrapping up a rehabilitative back-to-work scheme, or CE Scheme as they call it in Ireland, after being out of work ill (psychiatric illness) for six years. So when I say I didn’t know if it all applied to me, my only regular income was state welfare. 

Luckily, my circumstances did change, although I’m still earning a really modest salary and have no assets or savings. I still have health issues but I can work now which is a good thing. 

It wasn’t until recently that the penny dropped - I should review this whole thing again! I’d been asked by the bank for my SSN when applying for a CC card. 

And to be honest now I’m really, really anxious because I realise I’m late filing the last few years salary, I should’ve been doing it since I went back to work.

So I really want to be compliant. And it was never my intention to be uncompliant. I still live and work in Ireland and only go back to the US on holiday. 

How do you think I should approach this?


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## Bevdeforges (Nov 16, 2007)

If you weren't born in the US, it's a whole bunch easier to remain under the radar. And most banks actually have a way for you to fill out the form if you don't have a US SS number. (Usually they just say to fill in the SSN blank with all 0's or all 9's.) 

If you were born in the US, you probably do have a US SSN - but you may or may not have a filing obligation, depending on your level of income these last years. 

If you want to come into compliance, the "simplest" way would be to file under the streamlined compliance system and be done with it. That way, if you have a US birthplace, you'd have no problems coming and going in the US on a valid US passport and that would most likely be the last you ever heard of it. Your salary income should be completely "excludable" (using form 2555) and unless you have significant income from investments or other sources, you probably won't owe any taxes anyhow.

Or you can continue as you are doing now. The fact that you mention an interaction with the Embassy leads me to believe that you do have some links to the US (if only a passport) so those may influence your decision as to whether or not to get compliant.


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## expat2684 (Feb 2, 2019)

expat2684 said:


> Hi, I’ve been living in Ireland since childhood. Both of my parents are deceased, I have been orphaned since 15. I never knew anything about US tax filing until a couple of years ago when the clerk at the US Embassy advised that I should look into tax filing. Of course, this shocked me! I never worked a day of my life in the US! I looked it up on the internet and could not figure out if the rules applied to me at the time. I did write an email to the IRS to explain my circumstances (as the embassy would provide no further info to me) and I did not receive a reply. Hence, I decided that it mustn’t be a requirement in my situation.
> 
> At the time, my life was very different. I was just wrapping up a rehabilitative back-to-work scheme, or CE Scheme as they call it in Ireland, after being out of work ill (psychiatric illness) for six years. So when I say I didn’t know if it all applied to me, my only regular income was state welfare.
> 
> ...


Also, I might add, I am a dual citizen. My father was Irish. I have an Irish/EU passport and an American passport.


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## expat2684 (Feb 2, 2019)

Bevdeforges said:


> If you weren't born in the US, it's a whole bunch easier to remain under the radar. And most banks actually have a way for you to fill out the form if you don't have a US SS number. (Usually they just say to fill in the SSN blank with all 0's or all 9's.)
> 
> If you were born in the US, you probably do have a US SSN - but you may or may not have a filing obligation, depending on your level of income these last years.
> 
> ...


Hi, yes, I was born in California and remained there until I was 8. 

I’m also returning to the US soon (I was hoping my family there could help me) and I’m worried I’ll get arrested or something (I’m extremely paranoid!). 

I am able to exclude everything and it’s not a problem for me to file forms and stuff.. I was just stressing if I file Streamlined or Reasonable Cause as I am worried because I was told about the tax ages ago by the clerk. I did forget after I concluded there was no need for me to file until recently. So will they think I’m willfull if I am to go with Streamlined? Like I KNOW that I wasn’t trying to evade taxes or anything but will they understand?


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## Bevdeforges (Nov 16, 2007)

To be perfectly honest, they don't analyze the "reason" you give. "I didn't realize" or "I didn't know" is probably what they receive in 99% of all cases. They have no reason to know that a clerk once told you about that (and from what you say, at the time, you may not even have been earning enough at the time to have to file). 

Also, despite what they would like you to think, they don't have a list at Immigration of everyone who didn't file taxes recently. Unless you've received a formal notice from the IRS saying that they think you owe taxes, you're very much free to come and go as you like on your US passport.


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## expat2684 (Feb 2, 2019)

Bevdeforges said:


> To be perfectly honest, they don't analyze the "reason" you give. "I didn't realize" or "I didn't know" is probably what they receive in 99% of all cases. They have no reason to know that a clerk once told you about that (and from what you say, at the time, you may not even have been earning enough at the time to have to file).
> 
> Also, despite what they would like you to think, they don't have a list at Immigration of everyone who didn't file taxes recently. Unless you've received a formal notice from the IRS saying that they think you owe taxes, you're very much free to come and go as you like on your US passport.


Well, I’d say I was earning about 1K over the threshold of welfare which is not taxable as far as I would have deduced at the time. Plus, I did write to the IRS via email to detail my situation and to see if it was taxable and they didn’t reply. So then I just put it to the back of my mind. I didn’t understand the whole thing properly at all and my main focus would’ve been putting my life back together.


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## Nononymous (Jul 12, 2011)

I would just continue ignoring this for the time being. First thing to do is ensure that you don't volunteer any information about US citizenship to any of your banks, so that there's no FATCA reporting. Then forget about tax compliance and go on your merry way. There will be no issues entering the US, immigration does not have any information about tax compliance status.

If you know that you're potentially being reported under FATCA, or if the paranoia is keeping you up nights, then use Streamlined or whatever to become compliant. It should be fairly simple to do yourself and not cost you any money, given modest means. But the first priority should be staying off the IRS radar as long as possible, unless you have plans of moving back to the US in the near future.


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## expat2684 (Feb 2, 2019)

Nononymous said:


> I would just continue ignoring this for the time being. First thing to do is ensure that you don't volunteer any information about US citizenship to any of your banks, so that there's no FATCA reporting. Then forget about tax compliance and go on your merry way. There will be no issues entering the US, immigration does not have any information about tax compliance status.
> 
> If you know that you're potentially being reported under FATCA, or if the paranoia is keeping you up nights, then use Streamlined or whatever to become compliant. It should be fairly simple to do yourself and not cost you any money, given modest means. But the first priority should be staying off the IRS radar as long as possible, unless you have plans of moving back to the US in the near future.


I’m pretty sure I’m being FACTA’d, my bank asked for my SSN recently for a credit card application and would not progress with my application until I provided them with the number.


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