Navigating US Tax Obligations for US Expats in the UK: Insights from Xerxes Associates LLP

Living abroad as a US expatriate in the UK brings a unique set of challenges, especially when it comes to navigating the complex realm of US tax requirements. In this article, we will delve into crucial topics such as the difference between resident alien and nonresident alien status, methods to determine if you owe the IRS, the significance of FBAR (Form 8938), reporting foreign income on Form 1040, the possibility of the IRS seizing your home, and the importance of meticulous income preparation tax. Our insights are provided in collaboration with Xerxes Associates LLP, renowned tax advisors specialising in the intricate field of cross-border taxation.

Difference Between Resident Alien and Nonresident Alien:

Understanding your tax status is fundamental for US expats. Resident aliens and nonresident aliens are taxed differently. Resident aliens are taxed on their worldwide income, similar to US residents, while nonresident aliens are taxed only on income derived from US sources. Xerxes Associates LLP can assist in determining your status and provide guidance on the tax implications.

How Can I Find Out if I Owe the IRS:

Determining whether you owe the IRS requires a thorough examination of your financial situation. Xerxes Associates LLP recommends reviewing your tax returns, checking for any outstanding payments, and consulting their expert team to assess your tax liability accurately. Prompt action can prevent potential issues with the IRS.

FBAR Form 8938:

FBAR (Foreign Bank Account Report) and Form 8938 are vital for reporting foreign financial assets. Xerxes Associates LLP emphasises the importance of complying with these requirements to avoid penalties. They can guide you through the intricacies of FBAR and Form 8938, ensuring full compliance with US tax regulations.

Reporting Foreign Income on 1040:

Reporting foreign income on Form 1040 is essential for US expats. Xerxes Associates LLP suggests meticulous record-keeping and accurate reporting to prevent any discrepancies. Their expertise can streamline this process, ensuring your foreign income is appropriately reported on your tax return.

Can the IRS Take My Home:

The IRS has the authority to seize assets, including real estate, to satisfy tax debts. Xerxes Associates LLP advises on strategies to mitigate this risk, emphasising the importance of addressing tax issues promptly. Seeking professional advice can help protect your assets, including your home, from IRS actions.

Income Preparation Tax:

Meticulous income preparation tax is crucial for US expats. Xerxes Associates LLP offers comprehensive income preparation services, guiding clients through the nuances of US tax laws. Their expertise ensures accurate reporting and minimises the risk of potential issues with the IRS.


Navigating US tax obligations as a US expatriate in the UK requires a thorough understanding of resident and nonresident alien status, diligent reporting of foreign income, and compliance with FBAR and Form 8938. Xerxes Associates LLP stands ready to assist, providing expert guidance on these matters and ensuring a smooth journey through the complexities of US tax requirements for expats in the UK.

Contact us via or fill out our contact form to discuss your expat tax situation with us.

Read more here: Xerxes US Expats Living & Working in the UK Blog.