Getting right with the IRS to expatriate: Thorsten's story from Germany
“It´s good to know that I'm prepared for the last steps with the IRS, once I receive my certificate of loss of citizenship."
Thorsten Schieber, Germany
Most Americans abroad discover their US filing obligations after building a life overseas as adults.
Thorsten Schieber’s story is a little different: he was born in the US, but his parents moved back to Germany before his first birthday. He has never lived in the US a day in his life – and yet, as a US citizen by birth, he was still on the hook for US tax filings.
For Thorsten, becoming compliant was about closing that chapter for good. He's currently in the process of formally giving up his US citizenship, and getting his taxes in order through the Streamlined Foreign Offshore Procedures was the bridge that got him there.
Key facts
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Country of residence |
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Filing method |
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Main challenge |
Meeting the IRS's compliance requirement in support of an in-progress expatriation |
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Outcome |
Fully compliant |
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Current status |
Awaiting Certificate of Loss of Nationality and final IRS steps to complete expatriation |
A US citizen who never set foot in the US
Thorsten holds dual German and US citizenship – but Germany has always been home.
"My parents moved back to Germany before my first birthday," he shares.
Like many people in his position, he grew up simply as a German citizen who happened to also be American on paper.
That distinction eventually became a real, practical problem. Under FATCA (the Foreign Account Tax Compliance Act), foreign banks must report US-linked accounts to the IRS – and many banks find that reporting burden reason enough to restrict or refuse service to US citizens.
"My ability to participate in the EU financial market is greatly hindered by the obligations non-US banks have towards the IRS," Thorsten says. On top of that, there was the ongoing cost and hassle of filing US returns for a country he'd never resided in.
As Wendy Christiansen, CPA and Tax Supervisor at Taxes for Expats, explains:
"We regularly work with people in Thorsten's situation – US citizens by birth or parentage who have never actually lived in the US. It's a common misconception that citizenship only counts if you've spent time there, but the IRS's filing rules may apply the same way regardless. The good news is that because the non-compliance is genuinely non-willful in these cases, the streamlined procedures exist specifically to help people like Thorsten get current without penalties."
Learning about the Streamlined Procedure – and hitting a years-long delay
Once Thorsten understood what FATCA meant for his day-to-day life, he didn't wait around to act. "I became aware of my tax obligations in 2020 and looked up the corresponding obligations for expatriation directly afterwards," he says.
Progress stalled soon after:
"In 2020 I didn't have a Social Security Number yet, and because of COVID and bureaucratic obstacles I wasn't able to obtain one before 2024," Thorsten explains.
Without an SSN, filing simply wasn't possible, so what should have been a quick fix turned into a four-year wait. Once his SSN finally came through in 2024, Thorsten was ready to move forward – and that's when he found Taxes for Expats.
Completing the Streamlined Filing Compliance Procedures with TFX
With the SSN hurdle finally cleared, the actual filing process moved quickly and smoothly.
"It was very easy to follow and understand, and the web portal/backend is very convenient," Thorsten says. Asked whether anything was harder or easier than expected, he's matter-of-fact about it: he went in without preconceptions, and the process simply delivered.
What he valued most was the day-to-day experience of working with the team: "Fast and transparent communication" is what he points to as the single most valuable part of the experience.
Huntly Mayo-Malasky, CPA and CEO at Taxes for Expats, explains:
"For clients who are moving toward expatriation, the streamlined procedures often become a required step rather than an optional cleanup – the IRS expects tax compliance before it will certify someone for expatriation. Getting that filing history in order, cleanly and correctly, is what allows the rest of the expatriation process to move forward."
Fully compliant – and ready for the final steps
With his filings brought current through the Streamlined Filing Compliance Procedures, Thorsten satisfied the IRS's compliance requirement with no penalties – exactly what he needed to keep his expatriation on track.
He's now waiting on his Certificate of Loss of Nationality and the remaining IRS steps to formally complete the process:
"It's good to know that I'm prepared for the last steps with the IRS once I receive my certificate of loss of citizenship," he says.
Tax compliance as the first step toward expatriation
For Thorsten, getting current with the IRS was what allowed him to move forward with the remaining steps of his expatriation process.
That's true for many Americans abroad who are ready to formally give up their US citizenship: the IRS requires five years of tax compliance before it will certify someone for expatriation, so the Streamlined Filing Compliance Procedures are often the necessary first step.
- Preparation and filing of 3 years of federal tax returns
- Submission of 6 years of FBARs (Foreign Bank Account Report)
- Eligibility review and analysis of your tax situation
- Secure document collection and communication with your assigned CPA
- Final compliance check before submission
- Optional preparation of a non-willful certification
Our team guides you through the entire process step by step – from the initial consultation and eligibility assessment to final submission with the IRS.
Since 2012, we've helped more than 2,200 taxpayers successfully complete streamlined procedures and resolve past non-compliance issues with confidence.
And if you’re already compliant – or working toward compliance – and considering expatriation, we also offer dedicated expatriation tax services, including exit tax planning and Form 8854 preparation.
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