August 25, 2015 - Phil Hodgen

Expatriation with no Social Security Number – report from the trenches

A CPA friend of mine send me this email — about the whole “how can you expatriate easily when you do not have a Social Security Number?” question.

I have dealt with 2 different clients that surrendered their passports at US Embassy, one in Madrid and another in Paris.  In both cases, no SS# and in both cases, their W-7 was rejected.  Also, in both cases, IRS issued multiple temporary ID’s (coincidence???)  It’s the most MAJOR headache EVER!  And, the IRS adjusted the tax liability because no personal exemption is allowed due to no SS#.  (So you have to somehow “trick” Lacerte into it)

The SS# should be in place BEFORE their citizenship is given up. 

I, personally, will never take on one of those clients.  No amount of money can compensate me (or you) for numerous letters and calls to the IRS to try to fix everything.  IRS just does not have a mechanism in place to deal with US people who expatriate.

And for sure there is no way to deal with this issue of no SS# if you are, for example, trying to file under the Streamline Procedures.