I am a US Citizen working in Europe on an EU passport since
1994. I'm equivalent of a US self-employed taxpayer and have filed timely US tax returns using the foreign earned income exemption, but no european returns.The EU has finally realized people like me exist and are seeking taxes, penalties, and intesrest. If I retrun to the US and th EU makes assessmenta againt me, will the US enforce those assessments.
First the GOOD news: In the past the rule of thumb was that no country enforced another country's tax laws or assisted in collecting their taxes. In a Tax Court case of an airline pilot living in Paris and taking the foreign earned income exclusion, my recollection is the Tax Court was dismissive of his failure to pay French taxes.
Now the BAD news. While I have yet to read of any US Court enforcing the tax assessments of another country, nothing surprises me anymore. We are in a global economy so things are changing.
My take is that "the jig is up" and "it is time to get out of town by sundown." Hopefully you have saved your tax-free profits and can find work in the States.
Probably, yes. There are tax treaties and treaties on enforcement of judgments, and those treaties may well require that the US enforce EU tax obligations. Stu
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.