How the IRS “Non-Filer Program” Affects USCs and LPRs Residing Outside the U.S.

U.S. citizens who have spent most all of their lives outside the U.S. are often times shocked to learn about the scope of the U.S. citizenship based taxation system.  In recent years, due to the aggressive pursuit of the IRS and Tax Division of the Department of Justice, there has become a keen focus on assets and accounts located outside the U.S.
Most recently in August of this year, the IRS has articulated its position for U.S. citizens and lawful permanent residents residing outside the U.S. in a document titled – “New Filing Compliance Procedures for Non-Resident U.S. Taxpayers“
The IRS has had for years a specific program for “non-filers”; i.e., those persons who do not file U.S. income tax returns.  The program is detailed in the Internal Revenue Manual, set out below.

4.19.17  Non-Filer Program

• 4.19.17.1   Non-Filer Program
• 4.19.17.2   Non-Filer Strategy
• 4.19.17.3   Non-Filer Processing
• 4.19.17.4   Non-Filer Penalties
• 4.19.17.5   Undelivered Mail
• 4.19.17.6   Taxpayer Replies
• 4.19.17.7   Closures – Non Examined