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Exploring Recent Cases and IRS Guidance on Unique International Disclosure Duties for Dual Residents

Exploring Recent Cases and IRS Guidance on Unique International Disclosure Duties for Dual Residents

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Complying with international information-reporting duties is difficult; the rules are complex, dense, and obscure. Things get even more complicated when it comes to people who are residents, for tax purposes, of both the United States and another country. These so-called “dual residents” have special disclosure rules, the violation of which can trigger taxes, penalties, extended assessment periods, and more. This article explores information-reporting obligations, traditional IRS enforcement actions, and recent cases and IRS guidance featuring contradictory rulings involving dual residents.

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