Green card holder responsibilities relating to tax

Taxpoor · Post by **Taxpoor** » Wed Oct 24, 2012 8:12 pm

I am posting this question for a friend who is a Canadian citizen and aquired a green card in the 90's which has expired as of 2003.

He has never exercised the priviledges of this green card, and has never resided or worked in the United States.

His question is...what to do now?

Can he just file an I-407 form and return the card, or is he considered a US person and now must become tax compliant with the IRS...or should he just do nothing as the card has long expired?

nelsona · Post by **nelsona** » Thu Oct 25, 2012 6:52 am

he must first become tax compliant, along with his form to the IRS.

Mach7 · Post by **Mach7** » Thu Oct 25, 2012 8:24 am

Thanks Nelsona,

So in a nutshell...even if he has no desire to renew his green card or work in the states and just stay in Canada. he still must jump through the hoops in order to follow the letter of the (US) law...so basically he IS considered a US person and therefore must comply like the rest of us?

I would assume if the answer is yes he would have to fill in 3 years of back 1040's along with FBARs (if he meets the threshold). And if so can he still use the sin number he got with the expired green card?

Thanks again Nelsona...I will let him know the bad news

Mach7 · Post by **Mach7** » Thu Oct 25, 2012 8:44 am

Mutual friend of both of ours as we all work at the same place in different areas of the country ..... he is in my time zone so i get to make the call

nelsona · Post by **nelsona** » Thu Oct 25, 2012 9:34 am

SSN numbers never change.

Even if he had renounced hos GC in the past, or had it confiscated at the border for failure to live in US, the IRS would Still consider him a US tax person, unless and until he files Form 8854, even if they have filed I-407 with DHS.