# CPA US Tax in Germany (best in Bavaria)



## Petey88 (Dec 7, 2018)

Hey guys! I want to renounce and need help with my tax compliance for this process. Can somebody recommend a cpa/ea in Bavaria or somewhere else in Germany. I’m talking about a US experienced cpa 🙂


----------



## Nononymous (Jul 12, 2011)

Just so you're aware, you do not need to be compliant with US taxes before or after you renounce. If you haven't been in the system, now is not the time to start. It's only really necessary if you have US financial ties. Renunciation is a completely separate process than exiting the US tax system, you do not need to prove compliance before giving up US citizenship. Do some research before deciding to file US taxes, it can be a very expensive mistake.


----------



## Petey88 (Dec 7, 2018)

Thx for your answer! I asked several cpas if it’s possible to renounce before being compliant...everybody has a different opportunity. I know that it’s practically possibly...but I’ll be a covered expat afterwards?!


----------



## Nononymous (Jul 12, 2011)

Petey88 said:


> Thx for your answer! I asked several cpas if it’s possible to renounce before being compliant...everybody has a different opportunity. I know that it’s practically possibly...but I’ll be a covered expat afterwards?!


Yes, technically you would be a "covered expat" but that is meaningless if you aren't planning to give or bequeath money to a US taxpayer heir. 

It's a decision to make, with many factors, but the important thing is, you don't need to do the tax thing to renounce.


----------



## Nononymous (Jul 12, 2011)

Slightly revised answer.

It is possible to renounce without being compliant. You will not be asked about tax status at the consulate, though you might be reminded of tax obligations. Once you have renounced, all future US tax liabilities stop, though past liabilities remain.

Whether you then want to go back and bring yourself into compliance (5 years' returns, 6 years' FBARs) and do the whole form 8854 exit tax routine is a separate question. (You have about 12-18 months to sort out the paperwork.) If you do not, you will be a "covered expatriate" but that really means nothing unless you were planning to leave or give money to a US taxpayer, in which case there's a punitive 40% tax (but only if they report it as coming from a covered expat).

In some cases it makes sense to make a clean exit from the US tax system, if you have US assets or 401k retirement plans particularly. If you have no US financial ties and were never in the US tax system, then there's really no good reason to bring yourself into compliance just because you've renounced, particularly if it's going to cost you money to do so. Typical "Accidental Americans" have realized that they can renounce to avoid banking and FATCA problems but otherwise safely ignore the IRS.

Note also that the IRS has no ability to collect taxes owed or penalties outside of the US against someone who is a citizen of their country of residence.


----------

