# Post-8854 issues



## lux83 (May 20, 2016)

This forum has been extremely informative and I am finally chugging along with my own tax issues and extricating myself from the system.

I have a quick question, though. I won't be at risk of becoming a covered expatriate by way of my earnings or assets, so the only likelihood I have is the "fail to certify" method. Obviously, I plan to certify that yes, I have complied, and in my mind I will have. I have always submitted my tax returns and I plan to get up to date with delinquent FBARs in the next few days.

So, let's say I get up to date, and next year I file my final return and my 8855, in which I certify that yes I have complied.

THEN, let's say, another year goes by and the IRS decides to audit me for whatever reason, and it's for a return still within the statue of limitations. Highly unlikely, but let's say it happens. They determine that I made a mistake and owe another $100 or something. Do I then become a covered expatriate by way of "certifying" something that, in the end, was not true?


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## Bevdeforges (Nov 16, 2007)

At the time that you "certified" you believed in good faith that you were fully compliant. While it's highly unlikely your returns would be chosen for audit (unless there is something "funny" about what you filed), a simple "mistake" (which you would be able to appeal or at least discuss before a final determination was made) does not constitute "non-compliance" - unless they show it was willful and done in order to evade paying your taxes. But for a paltry sum of $100 I really don't think you need to worry.
Cheers,
Bev


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## JustLurking (Mar 25, 2015)

lux83 said:


> ... Do I then become a covered expatriate by way of "certifying" something that, in the end, was not true?


On my _distinctly amateur_ reading, no.

You become covered if you 'fail to certify', and this is not the same as certifying in good faith and then later finding a mistake. Even the IRS's much beloved penalty-of-perjury rider at the end of the 8854 includes the clause "... and _to the best of my knowledge and belief_, it is true, correct, and complete."


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## celticweb (Mar 26, 2016)

Actually this did concern me too and I went searching online for information and Phil Hodgen actually had a blog post about it

HodgenLaw PC - International Tax

Not sure if links work here otherwise search for phil hodgen Audits and the Certification Test

I think it's true to say a normal error shouldn't make a difference, a major audit might be another story.

so in a sense i am glad that I was very thorough with my returns and had such good records even though lots of folks said just make good faith guesses, i made sure i used all figures from actual sources.


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## lux83 (May 20, 2016)

It's funny, because I can see how all possibilities are logical and true, which perhaps is the best example of how illogical and confusing this process can be. Interesting topic, nonetheless. Thanks everyone for your thoughts..


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