The US government is cracking down seriously on tax fraud. Obviously, they are not looking for your wife–they’re looking for the big guys.
But ,while the laws may be designed to catch millionaires–they apply equally to every single American citizen living overseas.
She will not owe any taxes (unless she earns more than $90,000 a year.)
But she MUST file the tax forms to prove it.
And she must continue filing the forms each and every year for the rest of her life.
She must file not only with the IRS, to prove whether she does or doesn’t owe taxes .
She must also file with the Department of the Treasury–to prove whether she is or is not laundering money through her bank accounts in a foreign country.
The IRS forms are the standard 1040 form and its accompanying stuff.
The Treasury form is called the FBAR and must be filed online.
She must list every single bank account she has a signature on: whether it is hers, or a joint account with you, whether it’s a long-term retirement savings plan or whether it’s an account at the church where she occassionaly writes a check to pay for cookies and choir robes.
I file 20 pages of forms every year…and I ain’t got no money to speak of.
GO TO A PROFESSIONAL TAX ACCOUNTANT! …today.
You need professional help. The accountant will know the rules for filing your delinquent forms for previous 3 or 4 years,etc, and make sure you file all the necessary forms.( Form 1040,Schedue Band D, Form 2555, Form 1116 ,Form 8939,Form 8965, plus the FBAR)
After he does it for you once, the forms are pretty simple, and you can do it yourself every year in the future. But right now, you need help. You are in violation of the law, and you can’t escape notice forever. Clear up the problem now, before it becomes serious.