Tax returns not filed by parent. How to rectify?

Also, when did he become a widow?

There are additional tax credits for widowers on a tapering basis

There is also marginal relief if your income is just over the exemption limit
 
jpd said:
Also, when did he become a widow?

There are additional tax credits for widowers on a tapering basis

There is also marginal relief if your income is just over the exemption limit
Click to expand...

All correct. But he's not going to get any credits or marginal relief unless he files some tax returns!

The core question is whether to do so, or to leave it to the executor to sort out.

For me, the answer to that depends on when he became a widow. If it's quite recent, then he probably should.

But if it's more than (say) four years ago, then is it really worth all the hassle?

(I suppose the answer to that would depend on the amount of penalties and interest that Revenue is likely to levy on his father's estate.)
 
Yes, but without any knowledge of the provenance of the pension, it is not possible to give anything other than a general answer

The first thing to do is to try and estimate what should have been declared and what the tax shortfall, if any, was
 
Is there any risk that sorting things out with Revenue will lead to the IRS focusing their attention on the father? US citizens are required to file annual federal tax returns, regardless of country of residence, even if there is no tax due. There is also the FBAR (foreign bank account) reporting. Tidying up the American aspect is likely to be even more stressful and costly than tidying up the Irish side of things. Might be better to leave the whole thing alone.
 
There are 1,000s, if not 100,000s, of US citizens living abroad who do not file tax returns with the IRS

In a majority of cases the tax due would be zero or be insignificant

There is no way the IRS will devote much energy chasing up a few 1,000s of dollars here, there and everywhere. They are after the big fish, not the sprats
 
Teddy23 said:
He has been fully resident in Ireland for over 45 years. I just want to see what we should do to address the fact he hasn't filed Irish tax returns
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All the more reason for the sleeping dogs route here at least from the US side of things.
 
Firstly you only pay tax where you are a resident and your Dad is resident in Ireland then only pays tax in Ireland

I have come across a similiar issue with my mother who is 81. She has always lived in Ireland
Her income is about 25k a year and she is allowed a tax threshold of 18k ( over age 70) but she has never submitted a tax return

What put her over the threshold above is she get 150 euros a week to look after my brother for 50% of the time. He has Downs Syndrome.
The thing is she spends most of the money on him . He has his own state income

What to do is the question. She has alot of savings and she does not spend money at all so she has gathered alot up. When she passes on will the revenue will come knocking and take alot of her money ? How far back will they go and will they enforce fines and interest.?

Maybe it might be worth trying to sort it now . This income started about 2008/2009

She honestly thought that she didnt need to pay tax due to her age and my brothers care being tax free ?

hard to know what to do as dont want to upset her now but dont want to pay her savings to the tax man
Can one retrospecively claim tax credits ..she would have gotten some for my brother's care allowance ..that would have meant the tax threshold would have increase to 21/22K so the taxable income would be lower

is the rate of tax above this threshold 40% ? thought I read that somewhere
is there anything else whe could ahve claimed for to push up there tax free allowances ?
 
MPFG12 said:
Firstly you only pay tax where you are a resident and your Dad is resident in Ireland then only pays tax in Ireland
Click to expand...
Not if you’re a US citizen!

You have a US tax obligation that may be fully offset by tax paid elsewhere.

It’s all on the thread.
 
Yaboyo said:
Firstly you only pay tax where you are a resident and your Dad is resident in Ireland then only pays tax in Ireland

I have come across a similiar issue with my mother who is 81. She has always lived in Ireland
Her income is about 25k a year and she is allowed a tax threshold of 18k ( over age 70) but she has never submitted a tax return

What put her over the threshold above is she get 150 euros a week to look after my brother for 50% of the time. He has Downs Syndrome.
The thing is she spends most of the money on him . He has his own state income

What to do is the question. She has alot of savings and she does not spend money at all so she has gathered alot up. When she passes on will the revenue will come knocking and take alot of her money ? How far back will they go and will they enforce fines and interest.?

Maybe it might be worth trying to sort it now . This income started about 2008/2009

She honestly thought that she didnt need to pay tax due to her age and my brothers care being tax free ?

hard to know what to do as dont want to upset her now but dont want to pay her savings to the tax man
Can one retrospecively claim tax credits ..she would have gotten some for my brother's care allowance ..that would have meant the tax threshold would have increase to 21/22K so the taxable income would be lower

is the rate of tax above this threshold 40% ? thought I read that somewhere
is there anything else whe could ahve claimed for to push up there tax free allowances ?
Click to expand...


You need to know the names of the welfare payments.

Is the 150 per week Carers Allowance?

Please note that CA is taxable.

Carer's Allowance

Carer's Allowance is a weekly social welfare payment to people who are caring for a person who needs support because of their age, disability or illness (including mental illness).
www.citizensinformation.ie www.citizensinformation.ie


Does the brother receive DA = Disability Allowance?
 
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