If a US citizen has permanently moved aboard - she should use overseas address?

[Anonymous]

What address she should use on 2020 tax filing -overseas address or US address ?

When she filed 2019 return she used US address  - how can she amend that return to give correct (overseas) address to IRS? 

[ToddL99]

As a US citizen, she must use Form 1040 to report her taxes. Form 1040NR is only used by non-resident aliens. 

Use her Indian address on the 2020 tax  return. This is entered in the "Mailing Address" interview of Personal Information. This is the address the IRS will use for correspondence related to her return.

The taxpayer is responsible for complying with the filing thresholds of Form 8938. You don't have "tell" the IRS you are living abroad, but you are required to comply with the appropriate filing threshold.

There is no reason or requirement to update a previous year return to correct an address. Just file the current year return with the correct address.

[Anonymous]

Address dilemma is clear now.

[ToddL99]

1. If she is a US citizen, the term "non-resident alien" does not apply to her. No matter where she lives, she cannot be a "non-resident alien" because she is a US citizen (not an "alien").

2. Her mailing address is where she wants the IRS to send any correspondence related to her return. Her home/permanent address can be wherever she considers her "permanent address' to be.

3. You do not have to convey to the IRS that you are living abroad - just comply with the filing thresholds, whatever they are for you. The IRS will only bring up your physical location if they have a question about what you filed on Form 8938 or something else on your return.

4. The IRS does not "expect" and is not "looking for" a reporting threshold; they expect you to comply with the reporting thresholds. They are not examining addresses to see if they indicate a different filing threshold for Form 8938.

[Anonymous]

ok

[ToddL99]

The IRS will not know what threshold applies to a given taxpayer unless they have a reason to examine the return; if they do examine (i.e. "audit") the return and find you failed to comply with the filing threshold, they will aggressively impose the penalties that apply.

The US tax system is described as a "voluntary tax system". That doesn't mean you have a choice on whether to file a return or pay tax, it simply means that the taxpayers "voluntarily" provide the information necessary to administer the tax laws. In this case, you are "voluntarily" complying with the filing thresholds for Form 8938.

In other words, it is up to you to comply with reporting requirements and up to the IRS  to penalize you if they find you aren't doing so.