URGENT: A dear friend is at her wits end with her parents who are citizens of the USA and permanent residents of Brazil. They are begging to move to FL. Any suggestions?

Wow, this is complex. So they're citizens of the US and permanent residents of Brazil. Does that mean they have Brazilian citizenship as well?

Reading through your post and the answers a few times, I think the best advice to get is both from a good immigration attorney and a tax attorney (I can't remember for sure but I think they're called "enrolled agents"), to establish a foundation from which to work.

Was the husband working for a US corporation with a Brazilian subsidiary, or a Brazilian company directly?

Can the Brazilian pension, albeit nominal, transfer to the US so they still get these funds?

This is so complex, and it bridges the issues of citizenship or possible dual citizenship, not having paid taxes to the US, residency, needs issues.... I just think that attorneys skilled in these areas would be the best ones who could sort this out and offer suggestions.

Or perhaps the US Consulate could offer some guidance.

Please let us know the results of any basic legal advice; this is such a complex and unique situation.

They’ll have to pay back taxes no matter what. My guess is they won’t be able to collect SS/Medicare or Medicaid until they satisfy the IRS. Do they have dual citizenship or did they renounce it when they became permanent residents of Brazil?
This will take a lot of time and money. Do they have valid passports? Might be difficult for them to come back.

A USA citizen has to pay income taxes to the US no matter where they lived. The only way to get out of this is to give up your US citizenship. I would think if they re-enter the US they will be required to pay outstanding taxes. They are going to need a tax lawyer to sort this out for them.

Here is something from the IRS website:

"4. I just realized that I must file U.S. income tax returns for prior years. How many years back do I have to file?

You must file a federal income tax return for any tax year in which your gross income is equal to or greater than the personal exemption amount and standard deduction combined (per the Form 1040 Instructions for the corresponding tax year). Generally, you need to file returns going back six years. This will depend on the facts and circumstances of your particular situation. For example, refer to Information for U.S. Citizens or Dual Citizens Residing Outside the U.S."

Could your friend's parents file and pay taxes for the previous 6 years? (No guarantee it would only need to be 6 years, but that is reasonable starting question.)

These are serious legal issues. When they sell the condo, it's sale will be reported to the IRS (by law) and could raise a question.

Hi NYDaughterInLaw,
I agree with freqflyer, it is likely that her dad worked at some time in the US prior to moving to Brazil, and would have paid into the Social Security system. Regardless, they are eligible for Medicaid which is a needs-based program not based on paying in.
Also, assuming that the Social Security that they might be able to collect is not enough, they are able to apply for SSI. It is a needs-based program for people with disabilities (which it sounds like they both have). Here is a helpful page of info:
https://www.ssa.gov/pubs/EN-05-11069.pdf

However, the possible $200,000 that may come from the sale of the properties is nothing to sneeze at! That money could sustain them modestly with in-home help. When that is spent down, Medicaid and SSI might be options.
Best of luck,
Margaret

Oh wow. I hope someone with legal background could help with suggestions!

I assume it is the tax evasion problem that is the tricky part, right? I suppose they could be in trouble for that without even moving, but coming back to the US might bring it to light. That would be a serious offense, I assume, with serious penalties.

I sure can't think of a solution but cross you fingers that one of our other members will.

Has anyone contacted a lawyer (probably without revealing the names of the tax evaders?)

NYDaughterinLaw, oh this can be so complex. I was wondering where the father had worked the other 20 years before going to Brazil? If he worked in the States, then chances are he paid into Social Security and Medicare via payroll taxes. One has to find out if he contributed enough time in the States to use those benefits.

Another option is for your friend, and any siblings, to all chip in and purchase health insurance, such as Kaiser. I have a friend where her husband and his siblings, all U.S. citizens, would buy health insurance via Kaiser any time the parents came to visit. Their visits were usually over a year each time. Kaiser seemed to had worked well for them.