Common renunciation and IRS exit tax questions

More and more United States citizens are renouncing their US citizenship. Many, thanks to the havoc that FATCA is wreaking on their lives. We understand the gravity of making this decision. These are common questions our clients ask when considering renunciation.

The Pomerantz FBAR victory — for now

FBAR penalties cannot be collected like regular taxes. In order to enforce collections, a civil judgement is required. The IRS civilly assessed Mr. Pomerantz FBAR willful penalties and interest on unreported accounts. Things did not go well for the government

IRS Notice CP90 – What should you do?

If you have received a CP90 Notice from the IRS, it means they are notifying you of their intent to levy certain assets for unpaid taxes. This is generally what most people refer to as garnishments or levies of wages and bank accounts. You have the right to a Collection Due Process hearing.

IRS Notice CP508C – What does it mean?

If you received a CP508C notice, the IRS has identified your tax debt as “seriously delinquent” and has provided that information to the State Department. The State Department generally will not renew your passport or issue a new passport to you after receiving this certification from the IRS, and they may remove or place limitations on your current passport.

IRS Notice CP2000 – What does it mean?

If you received a CP2000, it means that the IRS thinks the income and/or payment information they have on file doesn’t match the information you reported on your tax return. This could affect your tax return; it may cause an increase or decrease in your tax, or may not change it at all! So what should you do if you receive a CP2000?