For US expats who moved to Australia decades ago, the idea that they should be filing annual US tax returns may be unreal. Many have been non-compliant for years. Because of this, FATCA and the resulting compliance push have (probably on purpose to some extent) entrapped long-term expats, who have found that the rules have changed while they weren’t looking.
One major area where long-term expats have been entrapped is superannuation. Even the IRS has no idea how to report super. There are two main alternatives during the accumulation phase (this applies to most accumulation accounts) – either just the contributions are taxable in the Continue reading “Entrapment!”