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PostedExpatriation with no Social Security Number - another report from the trenches
Phil Hodgen
Attorney, Principal
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A friend (Virginia Jeker, a U.S. tax lawyer practicing in Dubai) sent me this email with her ideas for how to deal with the problem of a would-be expatriate who has no Social Security Number. This was in response to the third episode of the Expatriation Chronicles.
Hi Phil – this was a great piece. Your described situation: T w/o a Social Security Number who never had a duty to file a US tax return (the young student type person, as in your example, who has had no income) – the individual must still file Form 8854 after expatriation to avoid ‘covered expatriate’ status. I have 2 comments (for what they may be worth!!):Thanks for the email, Virginia.For the first point (looking at the instructions to Form 8854) I just have a profound fear of dropping a piece of paper into the Black Hole and hoping that it would be processed humanely. Ultimately, the IRS wants an ID number. I do not trust the system to arbitrarily assign a number when needed. My paranoia stops me from trying this.For the second point (using the Streamlined Procedure/Hotline resources) this is good to know. I have not done this before.1) I noticed the instructions to Form 8854 (at page 4 underneath the chart in the far left column) indeed contemplate the case when a T would not have a SSN & say the T should attach a statement explaining why he has no SSN. Thus, I think this might be sufficient instead of getting a SSN beforehand or the ITIN later on. What do you think of this possibility?http://www.irs.gov/pub/irs-pdf/i8854.pdfIdentifying number. Generally, this number is your U.S. social security number. An incorrect or missing identifying number may result in a continued obligation to file U.S. tax returns as a citizen or resident of the United States for persons expatriating after June 3, 2004, and before June 17, 2008, and/or a penalty of $10,000. If you were never issued a social security number, please attach a statement explaining the reason.2) Another possibility – IRS OVDP/Streamlined Hotline – I have been successful in getting them to issue a temporary IRS number if T has no SSN to be used on all returns etc. until the SSN is issued. This might be another possible way around the mess.