The Green Card Andrea thought she'd left behind: How she resolved an 11-year tax gap with TFX
“I discovered that, because I hadn’t formally given up my Green Card, I was still treated as an expat – and so these IRS obligations applied to me. That was quite a shock! By the time I realised I had taxes to file and non-US financial accounts to report, I’d been out of compliance for 11 years.”
Andrea Hennessey, Green Card holder now living in the UK, TFX client
When Andrea moved back to the UK, she let her US Green Card lapse and assumed that closed her American chapter for good – taxes included.
Years later, a single change on a statement from her US retirement account stopped her short: 30% of that year’s distribution had been withheld for US tax.
Looking into how to claim it back, she stumbled onto something she had not suspected – in the eyes of the IRS, she had never properly ended her status as a US person for tax purposes and still had filing obligations.
Here is how a routine attempt to reclaim withholding on a retirement distribution led Andrea to discover an 11-year compliance gap – and how she resolved it through the IRS Streamlined Foreign Offshore Procedure (SFOP) with Taxes for Expats.
Key facts
|
Years unfiled |
11 |
|
Status |
US Green Card holder |
|
Countries |
US, UK |
|
Filing method |
Streamlined Foreign Offshore Procedure (SFOP) |
|
Main challenge |
Discovering that, as a Green Card holder who never formally abandoned the status, she still had ongoing reporting obligations in the US |
|
Outcome |
Caught up on filings penalty-free; refund of 2024 withholding received |
How Andrea discovered her filing gap
Andrea built a long, mobile career as a project manager in the insurance and banking industries, with chapters of her life spent in Japan and the United States.
After 28 years abroad, she returned to the UK. Now retired, she is pursuing a lifelong interest in art as a weaver, spinner, and dyer.
Having lived and worked across multiple countries, Andrea never had reason to question whether she still had any connection to the US tax system after leaving the country.
Like many Green Card holders, she assumed her obligations had ended when she moved back to the UK:
“If I’m honest, I’ll have to admit total naivety regarding Green Card holders’ ongoing tax obligations. I assumed that having permanently left the US and letting my Green Card lapse, my only tax obligations were in the UK. I was totally unaware that I still had obligations to the IRS,” she says.
Also read. Taxes for green card holders – guide 2026
How a change in her provider's withholding revealed an 11-year gap
The turning point came when Andrea began taking distributions from a US 401(k) retirement account.
Wanting to do things properly, she sought advice from several UK-based accounting firms. Each advised her to file Form W-8BEN with her 401(k) provider under the US–UK tax treaty, which resulted in a 0% rate of withholding.
With no tax being withheld, Andrea reasonably concluded she had no obligations to the IRS. "Nobody advised me any differently," she recalls.
The penny finally dropped in 2024, when her provider changed how it handled treaty claims and withheld 30% tax from that year's distribution.
While researching how to claim it back, Andrea came across references to the tax and reporting requirements that apply to US persons living abroad – and made a more unsettling discovery:
"I'd assumed that leaving the US and letting my Green Card lapse had ended my obligations. It hadn't. Because I'd never formally abandoned the card, I was still a US taxpayer in the eyes of the IRS – which meant years of returns and foreign account reports I knew nothing about. By the time I understood that, I'd been out of compliance for 11 years."
As Wendy Christiansen, CPA and Tax Supervisor at Taxes for Expats, explains, Andrea's situation is far from unusual:
"The real warning sign was the W-8BEN itself. That form certifies foreign status – it's what a non-US person files. As a Green Card holder, Andrea was still a US person for tax purposes, so she shouldn't have been on that form at all, and the treaty couldn't zero out US tax on her 401(k) the way it would for a true nonresident. An expired or lapsed Green Card doesn't end your US tax obligations – only formally abandoning it does. Immigration status and tax residency don't always end at the same time, and that gap is exactly where people get caught."
Wendy Christiansen, CPA and Tax Supervisor at Taxes for Expats
Why Andrea turned to Taxes for Expats for help
Once Andrea understood the extent of the issue, she knew she needed expert guidance:
“The most helpful and up-to-date online articles I’d found all came from TFX. In my slightly panicked state I was very grateful to find current information so clearly laid out. They had a full, step-by-step outline of how they prepare filings, what I would have to do, and when. Transparency inspires trust – and so I chose TFX.”
For Andrea, the standout of the experience was the communication. Clear instructions made what initially felt overwhelming far more manageable.
“From the initial email response to my first inquiry, through to the e-file confirmation and final instructions for my IRS mailing, the instructions and responses were clear and timely. I couldn’t fault it.”
Andrea Hennessey, Green Card holder now living in the UK, TFX client
Most of that communication took place through the TFX portal, which Andrea describes as a smart, interactive, 24/7 system that doubled as a secure document repository and account-management tool.
“Nothing relieves the tedium of going through years of account statements,” she admits, “but once that was over, the process was quick and efficient.”
The outcome: a refund – and a clear path forward
The biggest concern Andrea had was the possibility of penalties. After more than a decade out of compliance, she had no idea what the financial consequences might be.
Instead, the streamlined route allowed her to catch up without penalties – and there was an unexpected bonus at the end:
“It felt great to get a refund of the tax my 401(k) provider withheld in 2024! What feels even better is knowing I’m finally on my way to extricating myself from my US tax residency status, and I know how to reach my goal. Based on my experience so far, I absolutely trust TFX to get me through it.”
According to Huntly Mayo-Malasky, CPA and CEO at Taxes for Expats, many people discover years later that their US tax obligations did not end when they thought they did:
"For someone in Andrea's position, getting compliant is the foundation for cleanly exiting the US tax system. When a long-term Green Card holder formally abandons the card, the IRS treats it much like a citizen renouncing: you file Form 8854 and certify several years of tax compliance. If you can't make that certification, you risk being treated as a 'covered expatriate' and facing an exit tax. So the streamlined filing does double duty here – it resolves the back years and builds the clean record Andrea needs to finish the job properly."
Huntly Mayo-Malasky, CPA and CEO at Taxes for Expats
Streamlined filing with TFX: a penalty-free path for Green Card holders
If you’ve discovered your US tax obligations late – whether you are a former Green Card holder who never formally abandoned that status or an American living abroad – the IRS Streamlined Foreign Offshore Procedure offers a structured, penalty-free way to get back on track, just as it did for Andrea.
The program is designed for taxpayers whose non-compliance was non-willful, meaning they didn’t intentionally avoid filing. It provides full penalty amnesty, regardless of income level or how long you’ve been behind. To catch up, you generally file 3 years of federal tax returns and 6 years of FBARs.
Our CPA-led streamlined filing service includes:
- Complete analysis of your situation and eligibility
- Preparation and filing of 3 years of federal tax returns
- Submission of 6 years of FBARs
- Secure document collection and communication with your assigned CPA
- Final compliance check before submission
- Optional preparation of a non-willful certification
Since 2012, TFX has helped more than 2,200 taxpayers complete IRS amnesty programs and return to compliance. Like Andrea, many initially believed they had no remaining US obligations — only to discover years later that unresolved filing requirements still existed. With the right guidance, those situations can often be resolved through the streamlined program without penalties and with a clear path forward.
