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If you are a U.S. citizen or green card holder living in Belgium, the IRS still requires you to file U.S. taxes every year regardless of where you earn your income. Falling behind, underreporting foreign income, or missing FBAR deadlines can trigger audits, passport revocation, or collection actions from thousands of miles away. A U.S.-based CPA who specializes in international tax resolution can negotiate directly with the IRS on your behalf, even while you remain in Belgium.
Americans in Belgium Are Not Outside the IRS’s Reach
The United States taxes its citizens on worldwide income. It does not matter if you have lived in Bruges, Brussels, or Ghent for ten years.
The IRS has expanded its international enforcement significantly since 2020. According to the IRS Data Book, international collection activity grew by over 40% between 2021 and 2024.
Belgium has roughly 15,000–20,000 American expatriates, many of whom work in EU institutions, NATO, or multinational corporations. A significant portion are unaware of ongoing U.S. filing obligations.
The Most Common IRS Problems Americans in Belgium Face
Unfiled Returns Missing multiple years of U.S. tax returns creates a “substitute for return” filed by the IRS usually less favorable than if you filed yourself. See our guide on what to do if you haven’t filed taxes in years.
Unreported Foreign Bank Accounts U.S. persons with more than $10,000 in foreign financial accounts must file an FBAR (FinCEN Form 114) annually. Belgian bank accounts even routine checking accounts qualify. Willful failure can result in a penalty of up to $100,000 or 50% of the account balance, whichever is greater.
Foreign Earned Income Exclusion Errors The IRS closely scrutinizes Form 2555. Many expats incorrectly calculate the Physical Presence Test or the Bona Fide Residence Test. This can result in audits that disallow thousands in exclusions.
IRS Passport Revocation Owing more than $62,000 in seriously delinquent tax debt (2025 threshold) can lead to U.S. passport denial or revocation. For someone living abroad, this is a serious practical threat. Learn how to protect your travel documents on our IRS Passport Revocation Help page.
Tax Liens on U.S. Assets Even if you own no property in Belgium, a federal tax lien can attach to U.S. real estate, brokerage accounts, or retirement funds you hold stateside.
Comparison: IRS Resolution Options for Americans in Belgium
| Feature | Installment Agreement | Offer in Compromise | Currently Not Collectible | Streamlined Filing |
| Measurement | Monthly payment amount | Lump-sum settlement | Temporary pause | Catch-up filing program |
| Best For | Steady income, manageable debt | Significant financial hardship | No current ability to pay | Unfiled returns, low willfulness |
| IRS Approval Rate | ~85% | ~40% | Case-by-case | High for qualifying expats |
| Penalties Waived? | No | Partially | No | Yes (Streamlined Foreign) |
| Timeline | 2–6 months | 12–24 months | 3–6 months | 3–6 months |
| Available to Expats? | Yes | Yes | Yes | Yes (specific program) |
What People Are Actually Asking (Conversational Queries)
“Can the IRS collect money from me while I live in Belgium?” Yes. The IRS can levy U.S.-based bank accounts, Social Security benefits, and retirement accounts even if you live overseas. They can also work through tax treaty mechanisms.
“I haven’t filed U.S. taxes since moving to Belgium five years ago. What happens now?” You may qualify for the IRS Streamlined Foreign Offshore Procedures, which allows you to catch up on three years of returns and six years of FBARs with reduced or eliminated penalties if your non-compliance was non-willful.
“Does the U.S.–Belgium tax treaty protect me from double taxation?” Partially. The U.S.–Belgium Income Tax Treaty provides credits and exemptions on certain income types but does not eliminate U.S. filing obligations. You must still file and claim treaty benefits correctly.
“Can a CPA in the U.S. represent me with the IRS even though I’m in Belgium?” Absolutely. A licensed CPA holds Power of Attorney (Form 2848) and can communicate, negotiate, and appear before the IRS on your behalf no flights required. This is exactly how our firm works with expat clients.
Common Mistakes Americans in Belgium Make
- Assuming residency abroad eliminates U.S. tax obligations it does not.
- Treating Belgian tax compliance as a substitute for U.S. compliance, these are two entirely separate systems.
- Waiting until the IRS contacts them by that point, penalties have already compounded significantly.
- Using general tax software platforms like TurboTax are not designed for expat situations involving FBARs, Form 2555, or treaty positions.
- Not disclosing Belgian pension or retirement accounts, these may require PFIC reporting or Form 8938 under FATCA.
- Ignoring CP504 notices, this notice signals the IRS is preparing to levy. Our guide on CP504 notices explains the 30-day window you cannot afford to miss.
The Belgium–U.S. Tax Landscape: Key Numbers
- 🇺🇸 The U.S. is one of only two countries that taxes citizens on worldwide income (the other is Eritrea)
- 📋 FBAR penalties start at $10,000 per violation for non-willful failures
- 📅 The Streamlined Foreign Offshore program requires 3 years of returns + 6 years of FBARs
- 💶 The Foreign Earned Income Exclusion maximum in 2025 is $126,500
- 🛂 Passport revocation threshold in 2025: $62,000 in seriously delinquent tax debt
Why EEAT Matters When Choosing a Tax Resolution Professional
Not every CPA is equipped to handle international IRS matters. This requires:
Experience Understanding bilateral tax treaty positions, FATCA compliance, and cross-border collection limitations.
Expertise Knowing which IRS resolution pathway is correct for each client’s specific situation, not a one-size-fits-all approach.
Authoritativeness A licensed CPA who has represented dozens of expat clients before the IRS Collections and Examination divisions.
Trustworthiness Transparent fee structures, written engagement agreements, and no false promises about guaranteed outcomes.
Ed Parsons, CPA, has worked with U.S. citizens across Europe including Belgium to resolve unfiled returns, negotiate payment plans, and close IRS collection actions. Our international tax services page outlines the full scope of how we work with clients abroad.
How the Resolution Process Works (From Belgium)
Step 1 – Free Consultation A video call to review your situation, years of exposure, and the most appropriate resolution path.
Step 2 -IRS Transcript Analysis We pull your complete IRS account transcripts to understand exactly what the IRS has on file and what they think you owe. Our Advanced Guide to IRS Transcripts explains why this step is critical.
Step 3 -Power of Attorney Filed We file Form 2848 so the IRS communicates directly with us not you.
Step 4 -Resolution Negotiated Whether that’s a Streamlined filing, Installment Agreement, Offer in Compromise, or passport hold reversal we build and execute the strategy.
Step 5 – Closure You receive written confirmation from the IRS that the matter is resolved.
