[JohnStrange]

Are you sure about your noncompliance status?

IANAL, but aren't there treaties between the US and all EU countries that avoid any double taxation? You have to pay income tax wherever you live most of the time and conduct your business. You never have to pay income tax twice, in two countries. Unless you obtain your income mainly in the US, you should be exempt from paying US taxes. This is independent of citizenship.

Sorry if I'm missing something, I thought (and have been told) that this is how it works, so I'd be happy if someone else with more knowledge could clarify this.

[sethx]

The noncompliance is not about taxation, its about not reporting income. Every year carries a penalty of 10k. All of this can be reset to 0 by bringing myself into compliance and then it will be pardoned, but from that point on i must comply every year. For now i have a "void all your debt card" which i'd rather keep in my sleeve until i really need it.

[joncrocks]

I believe you're right about tax treaties.

However I suspect that in the case of a US citizen, that doesn't mean you don't have to officially declare your tax status/income to the IRS each year. Hence the parents worry that he's going to have to trawl back over his entire working life to 'prove' that he doesn't owe any back taxes.

IANAL, but am from the UK, lived in the US for a few years and have had to deal with moving back and forth.