Relinquishing your United States citizenship without fully wrapping up your federal tax obligations can lead to severe financial consequences. Under the strict U.S. expatriation tax regime, failing to properly exit the tax system can cause you to be hit with an expensive “exit tax.”
File Your FBAR on Time to Avoid Penalties
Any U.S. person with a financial interest in or authority over foreign financial accounts may be required to file a Report of Foreign Bank and Financial Accounts (FBAR). An FBAR is required if the aggregate value of the accounts exceeds $10,000 at any time during the calendar year. FBARs are due April 15 of the following calendar year, though an automatic extension is allowed.