In a development that is being seen by American expat groups in France as a major win, the U.S. Internal Revenue Service has admitted in a U.S. Tax Court that it had wrongly collected millions of dollars of tax from France-resident American citizens, ending a years-long legal saga that could see millions of dollars paid to U.S. expats who have lived in and been filing tax returns from France, in the form of refunds.
The matter, which is seen as changing an element of the way Americans resident in France are taxed by the U.S., could lead to thousands of the estimated 100,000 American citizens currently living in France claiming back up to US$100m from the U.S. government, according to London-based U.S. tax attorney Stuart Horwich of Horwich Law.
Horwich assisted Ory and Linda Eshel, the two France-resident U.S. taxpayers who mounted the legal case in question, in bringing their claim to court.
At issue is a court statement by the IRS, in a Washington, DC court, that it had finally accepted that U.S. citizens resident in France could deduct against their U.S. taxes certain previously disallowed taxes paid to France.
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