People born in the United States, with Chilean parents, automatically acquire both countries ‘nationalities. This situation entails certain benefits, but also burdens and obligations that, if not taken into account, can have important consequences for Chilean-Americans. Among these, perhaps the most relevant is being a tax payer for the United States purposes. 

Unlike most countries, which consider only those who reside in their territory as taxpayers, regardless of their nationality, US laws tax the income received by American citizens, without considering the country where they live in. Therefore, a person who was born in the United States, but resides in Chile, may be in tax default without knowing it. 

The consequences of not declaring taxes in the United States can go unnoticed for years, but in the event of an economic operation that is reported to the IRS (American Internal Revenue Service), significant fines and the obligation to pay taxes retroactively can be triggered. This is especially relevant in the case of asset reorganizations, given the rigor of US laws regarding foreign companies controlled by US citizens, on which high tax pressure is exerted. 

The United States offers a series of tools to regularize the tax situation of those who, in good faith, have not complied with their tax obligations. Additionally, in certain cases, there is the option of renouncing American citizenship. For those who choose to waiver, there are visa alternatives to reside in the United States that do not imply citizenship.