I found out FBAR exists about two days ago and I haven't slept right since. Someone please tell me if I'm overreacting.

From what I've been reading, it's a foreign bank account report (FinCEN Form 114 which apparently isn't even an IRS form?). If you're a U.S. citizen living abroad, you have to file it if the combined balance of all your foreign accounts goes over $10,000 at any point during the year. Not per account, combined. And apparently, even if you only crossed that threshold for a single day, it still counts. That part feels kind of ridiculous.

What I can't wrap my head around is that it isn't attached to your tax return and you don't actually pay anything with it. You're basically just reporting that the accounts exist. So why does every thread I read make it sound like missing it is the beginning of a financial horror story?

When I moved abroad, I did what I thought any normal person would do and opened a checking account and a savings account. I had absolutely no idea there was a separate reporting requirement for something that seemed so ordinary.

Do people actually get penalized for missing FBARs or is this one of those rules that's technically real but mostly enforced when there's something else going on?

And if you only found out a few years later and never filed, how bad is the catch up process? Has anyone here gone through it?

Hi everyone, I'm a dual US/Canadian citizen living in Canada and have been diligently filing with the IRS and doing my FBAR for almost 20 years now since moving here.

My two kids are dual citizens as well and we are going to be opening their own bank accounts for them in Canada. I'm wondering what are the things I should be thinking about when it comes to opening accounts for them. I'm considering not putting my name on their accounts as joint and only putting my husband (he is only Canadian). However, the kids are obviously still American so would need to file their own if they meet the threshold. If my name is on their accounts, I would need to include in my FBAR calculations as well.

I purposely did not put my own name on their RESP accounts so I do not have to consider those for my FBAR reporting.

Does it make a difference either way in the end? I just have to know what accounts to report on? It won't be a ton extra yet, but my daughter is an actor and singer and can have some occasional gigs and shows that have inflow to her, but that still wouldn't meet the threshold for her own FBAR yet. And yes, I am also watching to make sure if/when we meet the threshold for her to file her own taxes too (right now she's claimed as a dependant on mine).

Yesterday -- July 21, 2026 -- I received a letter from the IRS. It said that I owed more money and it gave a due date for paying: July 20, 2026.

I check my mailbox daily, so this letter reached my house on July 21. (Correction) The IRS letter was dated June 29.

I didn't understand their corrections and I wanted to know whether I'd be fined for paying late. I called the phone number in the letter. The service hung up on me repeatedly with a recording about being busy. I finally got through for inquiries about payments. I was put on hold. After about half an hour, the battery in my phone died. So I got a different phone in my house, an old one with no speaker. I called again, was put on hold, and held that old phone against my ear for about an hour. No one ever answered, so I finally hung up. Meanwhile, I tried the IRS chat service. It said no one was available. I tried it repeatedly for about 2 hours and didn't get through. (Note: I got into the chat service but I was turned away because I don't have an ID.me account.)

I paid the amount in the letter via bank transfer yesterday. However, I still don't know whether I'll be fined for being late, and I still don't know what I did wrong. I would send a letter to ask, but that hasn't worked in the past. Calling has been the best way to get answers, but you have to get through.

I've tired to read up about this but it doesn't make too much sense but I'll keep it simple.

I've got one income in the UK where I pay taxes and live full-time. I pay more taxes (on said income) than I would in the states so the option of foreign tax credit comes up.

Is that just accrued "overpaid" taxes which cumulate/carryover for the 10 year limit which can then be used to offset future US taxes if they did need to be paid?

Seems strange to me but I'm not complaining.

If you need additional information to answer this or it is more complex than that in my situation then let me know (like SSN and mother's maiden name----kidding!)

Thanks

Latvia has no totalization agreement with the US, meaning I already pay 15.3% US self-employment tax on my earnings. My concern is not about US SE tax, I accept that obligation. My concern is whether Latvia can also require me to pay Latvian social insurance contributions (NSIC at 31.07%) on the same income, effectively taxing the same earnings twice for social security purposes.

Specific questions:

1. As a Latvian tax resident who never registered as self employed in Latvia, am I actually obligated to pay Latvian NSIC on foreign sourced US income?

2. Does the Latvian VID have visibility into income paid to a US bank account from a US company with no Latvian paper trail?

3. What realistically happens at Latvian tax filing time, am I required to file a Latvian declaration, and if so what does that look like for someone in my situation?

4. Has anyone lived this exact scenario, US citizen, Latvian tax resident, 1099 income from US company, no local business registration, and what was your experience with the Latvian tax system?

I've spoken to Latvian tax lawyers who wanted 3k+ retainers just to discuss it. Looking for real world experience from people who've actually navigated this.

I am about to ship a SFOP-Package to the IRS and want the the safest option (for proof of delivery).

- FedEx vs. DHL Express: Anyone used one of them for SFOP? How was your experience? How reliable was delivery/tracking?

- Direct Signature: DHL Express offers this option: "someone at the delivery address (the recipient or an authorized representative) must sign for the package". Does this actually cause delays/problems at a government mailroom or is it a non-issue since someone's always there during business hours? I want to avoid the package to be sent back in case no one is available to sign.

First-hand experiences appreciated. Thanks!

I'm a US-UK dual citizen and I have a substantial amount of US student loans that I expect will be forgiven in about 5 years. I know that the IRS will consider this as income when it happens, and that I will need to deal with the taxes on that in the US.

But what about the UK? I have been looking for some explicit guidance on how cancellation of debt in another country is treated by HMRC but so far haven't found anything that mentions that scenario specifically. Any pointers to an expert or source of information on this?

Hello,

I have an investment account with fidelity as well as my old 401K account. I recently moved from the US to the UK and am maintaining the investment account from abroad using a US address.
However, I took up employment with the UK branch of my company. It’s a huge company. They are now flowing through into the net benefits section of fidelity, showing that I have a UK address etc. I am therefore concerned. It is also showing I’m not eligible for a rollover as it believes I’m still employed by the same company. Which I am.
Curious if anybody has run into this before and whether anybody has some next steps? I don’t want fidelity to know about my UK residency.

Thank you!

I am thinking of registering as a freelancer (zzp) along side my normal employment in the Netherlands, but before I do, I wanted to check what impact it would have on filing US taxes. Would I have to pay tax on it or just file? And what forms would I need to fill for this.

Also same question but for buying a house, and potentially selling it in the future. Thanks in advance!

My children recently became U.S. green card holders and are now considered U.S. tax residents, we move next month and they will automatically become US citizens (The Child Citizenship Act).

Each child has an government-sponsored provident fund. The account is held in the child’s name, and opened right after birth, before we considered moving to the US or them becoming US-persons.

The main problem is that local law does not allow us to withdraw or close the account before the child turns 18, except in very limited medical circumstances. Relocating abroad or becoming a U.S. resident is not a permitted reason for early withdrawal.

I am concerned about the U.S. tax and reporting consequences, particularly regarding PFIC:
* I assume it must go into their FBAR when we first file on their behalf next year.
* Whether there is any practical way to reduce the compliance burden when the account cannot legally be closed. AFAIU, we can stop deposits.

The balances are relatively modest, but the accounts may remain open for many years.
Would love any advice on the topic.

Many thanks!

hi, I'd appreciate some help! I'm a Canadian, and need to file as a US tax resident for the first time in 2025. I started working a full-time job in Sept '25, but have fulfilled the residency requirements due to living in the US as of Sept '24.

I didn't know about the TFSAs reporting rigamarole, so unfortunately didn't liquidate my TFSAs until this year '26. so in '25, I have 2 TFSA GICs, and 2 other TFSA accounts with a few hundred dollars of stocks in them (I know, silly!). I also have self-employed income from Canada (that I have filed and paid Canadian taxes for).

the very nice tax preparer at H&R Block in NYC, who is experienced with cross-border taxes (a Canadian friend recommended him), said that it would cost me about $1,200 to report the TFSAs, and another $600 or so to file my taxes. this is way too costly for me... but is this par for the course, or does anyone have a recommendation for another tax preparer in NYC who could help me with this?

thanks so much, I am freaking out a bit!

Hello!

I hope this question is relevant as it relates to getting a SSN for my overseas-born child in order to pay tax in the coming year.

This year I moved outside the United States, but still need to pay taxes on my income from earlier this year. Our child was born earlier this year outside the U.S. and is a citizen by descent- already has a CRBA and U.S. passport but no SSN yet. I am hoping to list him as a dependent on my U.S. taxes for 2026 (to file in 2027), for which I need to obtain a social security number.

It’s easier to apply in person but we don’t plan to visit the U.S. this year, and I understand I can also apply for a SSN by mail through a Federal Benefits Unit. Does anyone know what documents I need to send the Federal Benefits Unit (ours is in Manila)? I tried contacting the FBU in Manila to clarify but they sent me a generic email.

The FBU sent me a template Letter to Custodian of Birth Records (SSA-L706) but it seems to not be applicable in our case as child wasn’t born in USA. Does this form need to be completed for the SSN by mail application?

If anyone has experience applying for SSN via mail for their child, would appreciate if we can connect.

Thank you all!

Hey all. I'm not American and I've never had to file US taxes myself, so I'd genuinely value the eyes of people who have.

I've been building a FEIE helper inside an app that tracks tax residency for people who move between countries a lot. It already logs where you are day by day. My focus is only the Physical Presence Test day count (the 330 days abroad, 35 US days side of it), not the full FEIE picture with all its edge cases.

There are two views I'm unsure about:

1. The budget as 35 bubbles: filled = a day already spent in the US, empty = still available.

2. A sliding 12-month window. Since the test works on any consecutive 12-month period, not just the calendar year, you can drag a fixed 365-day lens across a 3-year track and watch, live, whether that window qualifies, how much of each tax year it covers (one window feeds the two years it crosses), and, if you enter a salary, the prorated exclusion it would secure. Past days show as confirmed, future days stay amber since they aren't lived yet.

I'm not selling anything and I'd rather not turn this into a promo. I just want honest feedback on whether these two ways of showing it make sense to people who actually file for FEIE. Does the day budget read clearly, and is the sliding window a useful way to think about choosing your 12-month period, or is it overkill?

What happens to 401k and 403b accounts when filing loss of citizenship and form 8854? I understand the 30% tax but can I keep them where they are until retirement? Do I need to inform fund managers of my change in legal situation?

Hi, I left the US in 2023 and relinquished US citizenship in 2025.

Currently filing my last US tax forms. I understand I must include form 8854.

Form 8854 part II requests expatriation information. Is Expatriation when I moved abroad or when I renounced citizenship?

Thanks so much!

US citizen, live in Germany. Converted about $120k from a traditional IRA to a Roth IRA in 2025 (all pre-tax money, so the full amount is taxable).

On the US side, this is straightforward — I owe US tax on the full $120k for 2025.

On the German side, I’m not sure when Germany taxes it:

Option A: Germany taxes it in 2025 too, same as the US. If so, I pay German tax and use it as a credit against my US tax, like I’ve done before with other income.
Option B: Germany doesn’t tax the conversion itself, and instead waits until I actually withdraw money from the Roth account later — which could be many years from now.

Has anyone actually done a Roth conversion while living in Germany and gotten a clear answer from a tax advisor on which of these applies? Trying to figure out if this is settled practice at this point, or still a gray area where advisors genuinely disagree. Trying to sort this out before I convert any more money.

Hi, can share your experience with direct pay for SDOP? How to select the right category?

1. pay 5% penalty: under 'Civil Penalty', there's no 'SDOP compliance' option

2. pay amended tax: under type 'FORM1040 -income tax' , there's 2 reasons:

   amended: is this for the tax and interest need to pay?

   offshore streamlined Filing compliance: is this for 5% penalty?

3. Is it possible to pay through the personal IRS online account? what's the difference?

is it better with Direct Pay?

Thanks!

Long story short: I moved to Italy three years ago to live with my spouse (Italian citizen). I kept my US job, working remotely, paid in USD to a US bank account, W-2 employee. I didn't realize that Italian tax residency rules mean my US salary should have been declared and taxed in Italy from day one, since the work is performed here. I found out much later than I should have, and I now have three years of unfiled Italian returns.

I've since consulted with a couple of Italian commercialisti about options: filing going forward, potentially using the "impatriati" tax break for new residents, and separately dealing with the back years. The estimates for voluntarily cleaning up the back years are steep (well into six figures once you add the penalty and interest), well beyond what I could pay in a lump sum.

A few things I'm trying to understand better and would love to hear real experiences on:

• Has anyone actually gone through the "omessa dichiarazione" (unfiled return) process with the Agenzia delle Entrate? Either voluntarily or because they got summoned? What did it actually look like?
• Has anyone used one of Italy's periodic tax amnesty programs (condono/definizione agevolata) to resolve something like this? How did you find out about it / apply in time?
• For those on a residency permit tied to an Italian spouse, has an outstanding tax situation ever come up during a permesso renewal at the questura? Did it cause problems, or was it more of a non-issue than you expected?
• Any general experience with how quickly/slowly AdE actually acts on foreigners with relatively modest, non-corporate tax debts?

I'm working with a commercialista now on the actual strategy, just trying to get a sense of real-world outcomes from people who've lived through something similar, since a lot of the official guidance is vague on how enforcement actually plays out in practice. Appreciate any perspective.

I am 24M, have been living in PK for 23ish years. I only started earning after my graduation in PK and it’s like 4-5k$ per year. As per my research I don’t have to file taxes, neither FBAR because I never had money more to an 10k. Does it mean I am compliant? I visited US last year, got a bank account opened, credit card etc but haven’t filed any taxes and I am worried if it’s a red flag or sth. Another thing I realised after joining this sub is to let local banks in foreign country know your ssn for fatca? I don’t think my bank asked me that, does it make me non compliant and whether I should close that account and make a new one where they register me as a us citizen? Also is it impossible/hassle to invest in mutual funds / local stocks as a us citizen because it would make filing taxes a nightmare, if yes then id definitely avoid it. And just a question, is filing requirement different when living in US vs Abroad? Thanks a lot.

I'm a US-based cofounder considering a relocation to Amsterdam in q4 (spouse's job) and the DGA (directeur-grootaandeelhouder) rules trip up every scenario i model.

My company is a delaware c-corp with a small Dutch subsidiary already open for our EU customers, and i own around 40% of the equity, split between common and preferred.

The specific hairball is what happens if i relocate and become a dutch tax resident, whether my delaware equity gets treated as DGA shares under dutch tax law because the c-corp is my employer, or whether the dutch subsidiary needs to structure my role through it for the 30% ruling to come into play.

Because if the answer is that DGA rules apply to any 5%+ ownership regardless of jurisdiction, i'm looking at box 2 dividend tax (33-40%) on any exit, plus the fictitious income calculation on retained earnings.

I've spent a lot of time going back and forth with a dutch tax advisor and the answers depend on which structure we present.

on the EOR side, we've been talking to Workmotion and Oyster plus one boutique dutch payroll firm about a possible role restructure into the dutch sub, all 3 flagged the 30% ruling salary floor changes for 2026 as the moving piece, but they gave different answers on how DGA interacts with the ruling if i also draw a nominal salary through the dutch entity.

So my question is for the US founders who've relocated to NL post-series-A, did you keep your equity structured through the US parent, or did you restructure to a dutch holding first?

Also how did DGA interact with your 30% ruling eligibility in practice?

thank you

Hi,
I’m moving from France to the US for an indefinite period and I’m trying to understand what to do with my investments before becoming a US tax resident.
I currently have a French PEA (Plan d’Épargne en Actions) with around €100k invested in a World ETF (WPEA).

For context, a PEA is a French tax-advantaged brokerage account designed for long-term equity investing. After 5 years of ownership, France provides favorable tax treatment on capital gains and withdrawals. However, the US does not recognize the PEA as a tax-advantaged account.
A major limitation of the PEA is that it is mainly restricted to European/EEA eligible stocks and funds. This means I cannot simply move my investments into common US ETFs such as VT, VTI or VOO while keeping the PEA.

My concern is that my current holding is a European UCITS ETF, which may be considered a PFIC by the IRS, potentially resulting in:
Form 8621 filing requirements,
complex taxation rules,
unfavorable treatment when selling.

I’m trying to understand what people with a similar situation actually did:
Did you keep European ETFs after moving to the US? How painful was the reporting in practice?
Did you sell the ETF and replace it with individual stocks inside the PEA to avoid PFIC issues?
Did you keep the PEA open with cash only to preserve the account history?
Did anyone build a diversified portfolio of individual stocks inside a PEA to keep the money invested? Was it worth the hassle?
Did you eventually move the money to a US brokerage account and invest in US-domiciled ETFs?

I’m especially interested in real-life experiences from French people who moved to the US, not just theoretical advice.

Thanks!

I've been living in Australia since I was 20yo and I haven't filed taxes for 14 years. My mum filed them for me when I was living in the US.

My case is complex. I've had 2-3 income sources most years. On average, earning $38k AUD per year.

For many of those years, I'd work for a few months in Australia then travel for a few months.

I'm now working another part-time job as a subcontractor. Still not earning a lot and likely will never. But I would like to own a house eventually.

How the hell am I supposed to juggle the two different tax years when I don't have any payslips from 2012??? Do I just make a wild guess based on my Australian tax summaries?

Do I have to look at historical exchange rates to file my taxes? AUD now is crap compared to 2012.

I was also getting salary packaging at a non-profit in one of my previous jobs.

Are there decent resources for doing this online? So many expat tax agents but I can't find any real resources. I can't afford to spend thousands on a tax agent. (EDIT - am looking at the wiki now, other resource suggestions still appreciated)

Does the US have a tax estimator like Australia's ATO does? So if I have to pay US fines, I can just renounce my citizenship?

(I don't really want to renounce my citizenship in case Australia ever becomes uninhabitable, but I guess the rest of the world wouldn't be far behind if that happened lol...)