Sorry, this isn't specifically France-related, but I don't see a general ex-pat board. Feel free to move elsewhere.

I'm working on my US taxes and the traitorous thought crossed my mind - what if one just stops filing? I've been filing since I left the US for Canada back in 2005, and I'll always have to file US taxes for French tax purposes. Still, I wonder if it's been done. So many American expats are surprised to learn that US citizens/residents are supposed to file forever. Does the IRS really hunt us down?

Anyway, just curious to hear any stories! I have to say, I think it's total BS that I still have to waste my time filing when I haven't lived in the country for six years!

I'm not recommending it, but unless you make a lot of money, I think you would be fine if you didn't file them. I have friends outside the US that never filed until they moved back to the US and had to set their tax records straight. Usually you ending up having to file the last 3 years (so keep your documents) but penalties for filing late are based off of how much you owe, so if you don't make enough to actually owe anything (I haven't owed anything for all the years I have filed from France), then it seems you would be fine.

Note, that I have no first hand experience with this, just anecdotes from friends.

Like Michael, I've got a few acquaintances who lived here in France for 10 or 20 years without filing. Despite all the best efforts of the IRS to imply all sorts of dire consequences, they probably won't go looking for you unless something pops up to attract attention to you or you need something from the US that will involve checking your tax returns (like a spouse visa).

You're supposed to give your social security number when renewing your US passport from overseas, and I have been told that this is so that they can check on the status of your tax filings. But I'm not sure I believe it. The first time I renewed my passport from France was the year after I legitimately did not have enough income to have to file so I didn't. Came and went from the US with no difficulty - though that was before all the computerized border checks they've been doing since 9/11 so I wouldn't try that one on my say-so.

The big risk you run by not filing is popping up on the IRS radar (a lottery win, they shake down a foreign bank where you've stashed your fortune, anything that involves $$$ and the fact that you're a US citizen) is that they'll rush in and disallow your earned income exclusion for any and all back years that they decide you should have been filing, so that interest and penalties will add up real fast.

The main motivator for filing is that once you have declared your income to them, the clock starts running and once the statute of limitations runs out (4 years currently, I think), they can't touch that year's income no matter what mistakes you made or what mischief you've gotten away with. If you haven't filed at all, those years never close and should something come up, they can go back as far as they like, just to hassle you.
Cheers,
Bev

PS I've moved this over to the General Expat Discussions board to attract a few more opinions.

This is excellent, I registered with this forum specifically to post this:

The one problem, as pointed out above, is that if I need something from the US it might be a problem if they were actually organized enough to have one agency to flag a problem to another (i.e. IRS -> Passport). For example, I want to renew my California driver's license shortly. I also need to register my children as US citizens and get their Social Security numbers. If this were put in jeapordy I would go through the hassle. As is, I will probably suck it up and file them next week but every year I am getting more and more tempted to say to hell with it!

The State of Virginia has a policy that unless you become a resident of another state, you must continue to pay Virginia State taxes, even if you live overseas.

California is the same. They cling on to you for life assumming you would be crazy to leave and won't pass the bona fide test so they can get their cut. However, once federal tax is done the state tax is a breeze, even the long form.

But back to the point... lets hear from those with dirty, dark secrets. Fess up!

I seriously doubt that either California or Virginia can actually enforce those. I moved over here from California and, other than having to settle up for the sale of my house, have had no further dealings with the State of California. In most countries you become a "bona fide" resident if you spend 183 days of the calendar year there.

Apparently when they gave the right to vote to all overseas US citizens, there was something in there about the states NOT being able to claim state taxes just because you are registered to vote in the state. And simply owning property in a state is not sufficient to make you "resident" there for tax purposes. (Granted, you may have to file a non-resident tax form if you're making money on any property you own in the state.)
Cheers,
Bev

My former neighbor in Virginia, who works for one of the world aid organizations, said some of her associates who spent time abroad had to pay back taxes when they returned to Virginia. Obviously VA isn't going to commit the resources to go looking for their residents living abroad.

I think the policy is wrong. If someone is receiving absolutely no benefits from VA, other than voting, why should they have to pay taxes to them and how come all states don't have this policy?

I think you're right on that point. The one "complication" is the fact of working for a "world aid organization" and then "returning" to VA. I worked for a short time at the OECD and if the aid organization is considered an NGO with "international civil service" status (like you don't need a visa to work wherever the NGO is located) it can complicate your "residence" situation because the type of visa you have is often taken as the prime evidence that you are "resident" abroad.
Cheers,
Bev

Not true for California though I heard that rumor also. I moved from California to Guam for 6 years and never a problem. Also moved to Philippines from California without a problem. However of course that portion of the year you did live in CA before your move must be paid.