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Tax Planning/US Taxes and Dual Citizenship

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Question
QUESTION: HI Owen,

We are Australian parents who lived in the USA a number of years ago and had our son in the USA.

Our son now has dual citizenship (Australia and US).

Recently, we saw that US Citizens can be liable for taxes in the USA even though the US Citizen lives in another Country and pays taxes in the Country that they live in.

Are you able to clarify this for me please?

Thanks so much,

ANSWER: Here is an article that explains the tax obligations encountered with dual citizenship.

http://www.investopedia.com/articles/personal-finance/040715/when-dual-citizensh

---------- FOLLOW-UP ----------

QUESTION: Hi Owen,

Thanks for getting back to me.

I read the article and it still seems a bit unclear. Is there a way to get some more certainty on this?

Do you know what the situation is if an American Citizen living in Australia (not dual Citizen) with regards to taxes? This person works and pays Australian taxes as well as compulsory retirement funding.

Thanks,

Answer
The certainty is that 'yes' they do need to file a tax return in the US.  Whether they will owe any money is a different story.  As usual, the answer depends on facts and circumstances.  I would contact a tax advisor in Australia who is familiar with tax requirements for US ex-pats.

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OWEN S. ARNOFF, EA

Expertise

As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.

Experience

I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

Organizations
National Association of Tax Professionals

Publications
http://www.amazon.com/Owen-Arnoff/e/B00BLRIZNU/ref=ntt_dp_epwbk_2

Education/Credentials
Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

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