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Posted by usdaughter 10 years ago.

My mother moved to australia when she was 9 and now IRS says she hasn't been paying her US taxes?

My mother moved to Australia when she was 9 from America and she entered on her mother's passport. She has not left the country since arriving some 40 odd years ago and has been paying Australian taxes. She got a letter recently saying that her bank reported her to the IRS for tax evasion.

Help?

1 reply on 22 October 2014.
Reply from boosh 10 years ago.

Hopefully you've already found a response elsewhere.. Essentially its to do with the wording of the US Tax Acts, they specify if you are an American citizen you're liable for tax on all your income worldwide. You don't get the "choice" Australians who move overseas get who can say they're not Australian residents for tax purposes. There are exceptions such as your first $80k in US you don't have to pay on but to be honest she'd be better speaking to somebody for professional advise. Her bank would've reported her to the US because she's given some indication that she holds American citizenship and there is a data sharing agreement in place...

Hope this helps a bit for you!

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