Coming Back to the USA


» From: Auburn, CA

Dear TaxMama:

We have lived outside the USA since 1994 and have not filed in the USA. One tax advisor told us that we need only file from 1996 on?

Another told us we have to file for 1994 on. We filed in 1993. What's the scoop?

Patricia
Dear Patricia,

Shall I just tell you what you want to hear? Or the real skinny?

Technically, you need to file all the missing returns.

Generally, IRS will only go back about 6 years, unless there is some outstanding collections action for those other years. In which case, since the file is already open, they won't close it without a return.

Were it I? Especially since you probably qualify for the foreign income exclusion, I'd file for ALL the open years. That way, you close the statute of limitations for IRS to come back and audit them. But, that's just me. I hate leaving any doors open.

IRS may be delightful and friendly these days .... but who knows how nice they'll be 5 years from now?

Best wishes,

Eva Rosenberg
Your TaxMama

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