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    Bluefunk's Avatar
    Bluefunk Posts: 1, Reputation: 1
    New Member
     
    #1

    Jul 15, 2010, 01:33 PM
    UK/US J1 Visa Tax treaty
    Hi,

    I have a basic question about the tax treaty between US and UK. I'm currently on a J1 visa and am not paying taxes to the IRS. I understand if I stay in the country 1 day over the two years, I am required to pay all 2 years of taxes back in one lump sum.

    Is there any chance of constructing a payment plan? What if I cannot afford to pay it?

    Thank you,
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Jul 16, 2010, 09:56 AM
    You will be allowed to set up a payment plan if you need to pay the two year retroactive tax.

    The IRS WILL come after you for the money, even if you return to the U.K. because one of the treaty provisions is that the UK tax authorities are obligated to enforce legitimate tax levies from the IRS.

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