Expat Forum For People Moving Overseas And Living Abroad banner

Status
Not open for further replies.
1 - 3 of 3 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter · #1 ·
US citizen by birth, lived in the uk 40 years. Didn't know I should be filing.
Had some money in a CD in the US (my father gave it to me), which generated interest so the IRS knows about me.
My wife and I sold our house 3 years ago for a large profit, made worse by buying when the pound was extremely low and selling when it was at $2. Put it all into a new house of course.
So, I'll file separately, my wife's British and doesn't need to file. I gather I need to file for 6 years. I get 250K capital gains tax 'allowance', but if I have to count all the money involved as mine, I'm well over that and will owe a tidy sum to the IRS which is of course ridiculous. Will they let me say only half the profits are mine?

My brother says I should get a tax lawyer, not just a CPA. Does that make sense? I doubt there are any specialists in US taxes in Derbyshire anyway, how do you find one?
Thanks
 

·
Administrator
Joined
·
50,368 Posts
Officially, if you haven't owed taxes, you can probably get away with only filing the last 3 years. (It's the IRS amnesty program.)

But to find a tax lawyer with US experience, contact any of the various US expat groups in and around London. (Check the US consulate website for London - they usually have a list of US clubs and associations.) Most US tax attorneys either belong to these expat groups or their wives do.
Cheers,
Bev
 

·
Registered
Joined
·
1 Posts
US citizen by birth, lived in the uk 40 years. Didn't know I should be filing.
Had some money in a CD in the US (my father gave it to me), which generated interest so the IRS knows about me.
My wife and I sold our house 3 years ago for a large profit, made worse by buying when the pound was extremely low and selling when it was at $2. Put it all into a new house of course.
So, I'll file separately, my wife's British and doesn't need to file. I gather I need to file for 6 years. I get 250K capital gains tax 'allowance', but if I have to count all the money involved as mine, I'm well over that and will owe a tidy sum to the IRS which is of course ridiculous. Will they let me say only half the profits are mine?

My brother says I should get a tax lawyer, not just a CPA. Does that make sense? I doubt there are any specialists in US taxes in Derbyshire anyway, how do you find one?
Thanks
There are a few things you need to consider. Firstly, you may owe taxes plus interest and penalties on the back taxes due from the sale of the home to the IRS. Additionally you may owe taxes on other income that is not taxable in the UK, but may be in the US (e.g. ISA's, some UK pension contributions, mortgage payments and interaction with FX movements). If you have had more than $10k in a 'foreign bank account' (see instructions to form TDF 90 22-1 for details of filing and delinquency penalties) you will need to go back and file these forms (a US lawyer may need to help you).

The IRS will expect a minimum of 6 years of back filing of both your US returns (1040) and the foreign bank account forms (tdf 90 22-1).

A US enrolled agent (like myself) can give you guidance on most of this. You can send me a private message through the forum/or look at my website if you want to contact me.
 
1 - 3 of 3 Posts
Status
Not open for further replies.
Top