Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #9: Compliance Challenges for Taxpayers Abroad

Problem #9: COMPLIANCE CHALLENGES FOR TAXPAYERS ABROAD
Taxpayers Abroad Continue to Be Underserved and Face Significant Challenges in
Meeting Their U.S. Tax Obligations

EXPLANATION OF THE PROBLEM
Taxpayers abroad face vast difficulties in complying with their U.S. tax obligations. Many find
themselves trying to navigate a complex tax system they do not understand, and the IRS offers
limited assistance and guidance. Taxpayers outside the United States face filing requirements
not typically applicable to taxpayers living in the United States, with the added layer of
complexity of applying the laws and treaties unique to the country in which they reside.
Taxpayers lack accessible, real-time customer service assistance from the IRS, and help from
private tax professionals, if available, is often expensive; both contribute to additional burden for
these taxpayers. Taxpayers abroad may face severe penalties if they fail to file forms, some of
which they may not even be aware. The complexity of the tax code, the inability to easily
comply, and the fear of severe penalties are so great that some taxpayers choose to relinquish
their U.S. citizenship.


For more information on this problem, please see the Taxpayers Advocacy Web page
(www.TaxpayerAdvocate.irs.gov)


Next week Tuesday Tax Tip will continue the discussion on Problem #10
(www.TaxpayerAdvocate.irs.gov) (TTT 012125)